semi-annual report - cohen & steers

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Semiannual Report June 30, 2017

Cohen & SteersInfrastructureFund

Merrill Corp - Cohen _ Steers Infrastructure Fund Semi-Annual Report [Funds] 333-160353 06-30-2017 ED [AUX] | pweakly | 22-Aug-17 17:54 | 17-15860-2.za | Sequence: 1CHKSUM Content: 10620 Layout: 31196 Graphics: 52317 CLEAN

JOB: 17-15860-2 CYCLE#;BL#: 12; 0 TRIM: 7.75" x 8.75" COMPOSITECOLORS: PANTONE 605 U, PANTONE Black 7 U, ~HTML color, ~note-color 2, ~watermark GRAPHICS: Cohen_Steers_ko_1-12.eps V1.5

COHEN & STEERS INFRASTRUCTURE FUND, INC.

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To Our Shareholders:

We would like to share with you our report for the six months ended June 30, 2017. The net assetvalue (NAV) at that date was $24.93 per common share. The Fund’s common stock is traded on theNew York Stock Exchange (NYSE) and its share price can differ from its NAV; at period end, the Fund’smarket price was $23.63.

The total returns for the Fund and its comparative benchmarks were:

Six Months Ended June 30, 2017 Cohen & Steers Infrastructure Fund at NAVa . . . . . . . . . . . . . . . . . . . . . . . . . . 17.50%Cohen & Steers Infrastructure Fund at Market Valuea . . . . . . . . . . . . . . . . . . . 26.56%Blended Benchmark—80% FTSE Global Core Infrastructure 50/50

Net Tax Index / 20% BofA Merrill Lynch Fixed-Rate Preferred Securities Indexb . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.14%

S&P 500 Indexb . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.34%

The performance data quoted represent past performance. Past performance is no guarantee offuture results. The investment return and the principal value of an investment will fluctuate and shares,if sold, may be worth more or less than their original cost. Current performance may be lower or higherthan the performance data quoted. Performance results reflect the effects of leverage, resulting fromborrowings under a credit agreement. Current total returns of the Fund can be obtained by visiting ourwebsite at cohenandsteers.com. The Fund’s returns assume the reinvestment of all dividends anddistributions at prices obtained under the Fund’s dividend reinvestment plan. Index performance doesnot reflect the deduction of any fees, taxes or expenses. An investor cannot invest directly in an index.Performance figures for periods shorter than one year are not annualized.

Managed Distribution Policy

Cohen & Steers Infrastructure Fund, Inc. (the Fund), acting in accordance with an exemptive orderreceived from the Securities and Exchange Commission (SEC) and with approval of its Board ofDirectors, adopted a managed distribution policy under which the Fund intends to include long-termcapital gains, where applicable, as part of the regular monthly cash distributions to its shareholders(the Plan). The Plan gives the Fund greater flexibility to realize long-term capital gains and to distributethose gains on a regular monthly basis. In accordance with the Plan, the Fund currently distributes$0.134 per share on a monthly basis.

a As a closed-end investment company, the price of the Fund’s exchange-traded shares will be set bymarket forces and can deviate from the NAV per share of the Fund.

b The FTSE Global Core Infrastructure 50/50 Net Tax Index is a market-capitalization-weighted index ofworldwide infrastructure and infrastructure-related securities and is net of dividend withholding taxes.Constituent weights are adjusted semi-annually according to three broad industry sectors: 50% utilities,30% transportation, and a 20% mix of other sectors, including pipelines, satellites, andtelecommunication towers. The BofA Merrill Lynch Fixed-Rate Preferred Securities Index tracks theperformance of fixed-rate U.S. dollar-denominated preferred securities issued in the U.S. domesticmarket. The S&P 500 Index is an unmanaged index of 500 large-capitalization stocks that is frequentlyused as a general measure of U.S. stock market performance.

Merrill Corp - Cohen _ Steers Infrastructure Fund Semi-Annual Report [Funds] 333-160353 06-30-2017 ED [AUX] | pweakly | 28-Aug-17 15:57 | 17-15860-2.ba | Sequence: 1CHKSUM Content: 17883 Layout: 61448 Graphics: No Graphics CLEAN

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The Fund may pay distributions in excess of the Fund’s investment company taxable income andnet realized gains. This excess would be a return of capital distributed from the Fund’s assets.Distributions of capital decrease the Fund’s total assets and, therefore, could have the effect of increasingthe Fund’s expense ratio. In addition, in order to make these distributions, the Fund may have to sellportfolio securities at a less than opportune time.

Shareholders should not draw any conclusions about the Fund’s investment performance from theamount of these distributions or from the terms of the Fund’s Plan. The Fund’s total return based on NAVis presented in the table above as well as in the Financial Highlights table.

The Plan provides that the Board of Directors may amend or terminate the Plan at any time withoutprior notice to Fund shareholders; however, at this time, there are no reasonably foreseeable circumstancesthat might cause the termination. The termination of the Plan could have the effect of creating a tradingdiscount (if the Fund’s stock is trading at or above NAV) or widening an existing trading discount.

Market Review

Global listed infrastructure produced a strong total return during the period and outperformed thebroader equity market. In general, stocks built on record highs made in the wake of November’s U.S.Presidential election in anticipation of possible new stimulus measures and business-friendly policies,including tax cuts, regulatory rollbacks and infrastructure spending. Overall, equity markets weresupported by a benign interest rate backdrop, as well as economic data that continued to suggest astrengthening global economy, although U.S. data was weaker than expected.

Growth in Europe continued to advance during the period, which prompted the European CentralBank to lower its risk assessment of the region, potentially paving the way for the eventual withdrawal ofits aggressive stimulus measures. In Asia, Japan’s government raised its overall view of the economy,citing stronger private consumption and an improved employment picture. In the U.S., the FederalReserve responded to an improving economy and falling unemployment by raising its benchmark short-term interest rate in June by 0.25%—the third such increase since December 2016.

In this environment, the vast majority of infrastructure subsector returns were positive, with Europeancompanies generally outperforming their U.S. counterparts.

Fund Performance

The Fund had a positive total return during the period and outperformed its blended benchmarkon both a NAV and market price basis. Stock selection in the electric subsector was the largestcontributor to relative performance during the period, partly driven by not owning a number of U.S.-based utilities that underperformed, including Firstenergy and Public Service Enterprise Group.Additionally, our overweight in Kyushu Electric Power benefited performance, as the stock rose over12% after a court ruled that the company may bring two of its nuclear reactors back online.

Favorable stock selection in midstream energy also aided performance, despite the subsectorbeing weighed down by weak and volatile oil prices. Concerns lingered throughout the period thatincreased U.S. drilling activity and rising inventories could undermine efforts by the Organization of

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Petroleum Exporting Countries (OPEC) to stabilize oil markets through production cuts. In particular, wewere underweight Enbridge, which underperformed amid its pending merger with Spectra Energy.

The Fund’s overweight in the communications subsector further contributed to relativeperformance, which outperformed following reports that U.S. telecommunications carriers will likelyramp up their network buildout plans in the second half of this year. European tower operators alsorallied, on renewed expectations of further consolidation within the space. We primarily benefited fromour overweights in American Tower, El Towers and Crown Castle International.

The Fund’s underweight in airports, which was the strongest performing subsector during theperiod detracted from performance, as many Europe-based operators benefited from improvingpassenger traffic and growing economic momentum throughout the region. In particular, we did notown Spain-based AENA and Germany-based Fraport AG, both of which outperformed.

Stock selection in the diversified subsector also detracted from performance, driven in part by ouroverweight in Macquarie Infrastructure and not owning Rumo Logistica. Stock selection in railwaysfurther detracted from relative performance, hindered by our overweight in Central Japan Railway, whichunderperformed as a stronger yen overshadowed the outlook for favorable tourism demand. Additionally,our overweight in water detracted from performance, largely due to being overweight United UtilitiesGroup and American Water Works, which underperformed during the period.

Impact of Leverage on Fund Performance

The Fund employs leverage as part of a yield-enhancement strategy. Leverage, which can increasetotal return in rising markets (just as it can have the opposite effect in declining markets), significantlycontributed to the Fund’s performance for the six-month period ended June 30, 2017.

Impact of Foreign Currency on Fund Performance

The currency impact of the Fund’s investments in foreign securities contributed positively toabsolute performance during the period. Although the Fund reports its NAV and pays dividends in U.S.dollars, the Fund’s investments denominated in foreign currencies are subject to foreign currency risk.Most currencies appreciated against the U.S. dollar, including the euro, U.K. pound and Japanese yen.Consequently, changes in the exchange rates between foreign currencies and the U.S. dollar were anet tailwind for absolute returns.

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Sincerely,

ROBERT S. BECKER BEN MORTON

Portfolio Manager Portfolio Manager

WILLIAM F. SCAPELL ELAINE ZAHARIS-NIKAS

Portfolio Manager Portfolio Manager

The views and opinions in the preceding commentary are subject to change without notice andare as of the date of the report. There is no guarantee that any market forecast set forth in the commentarywill be realized. This material represents an assessment of the market environment at a specific point intime, should not be relied upon as investment advice and is not intended to predict or depictperformance of any investment.

Visit Cohen & Steers online at cohenandsteers.com

For more information about the Cohen & Steers family of mutual funds, visit cohenandsteers.com.Here you will find fund net asset values, fund fact sheets and portfolio highlights, as well aseducational resources and timely market updates.Our website also provides comprehensive information about Cohen & Steers, including our mostrecent press releases, profiles of our senior investment professionals and their investment approachto each asset class. The Cohen & Steers family of mutual funds invests in major real assetcategories including real estate securities, listed infrastructure, commodities and natural resourceequities, as well as preferred securities and other income solutions.

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Merrill Corp - Cohen _ Steers Infrastructure Fund Semi-Annual Report [Funds] 333-160353 06-30-2017 ED [AUX] | pweakly | 28-Aug-17 15:57 | 17-15860-2.ba | Sequence: 4CHKSUM Content: 59414 Layout: 2832 Graphics: 6020 CLEAN

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Our Leverage Strategy(Unaudited)

Our current leverage strategy utilizes borrowings up to the maximum permitted by the InvestmentCompany Act of 1940 to provide additional capital for the Fund, with an objective of increasingthe net income available for shareholders. As of June 30, 2017, leverage represented 29% of theFund’s managed assets.Through a combination of variable and fixed rate financing, the Fund has locked in interest rateson a significant portion of this additional capital for periods expiring in 2020, 2021 and 2022a

(where we effectively reduce our variable rate obligation and lock in our fixed rate obligation overvarious terms). Locking in a significant portion of our leveraging costs is designed to protect thedividend-paying ability of the Fund. The use of leverage increases the volatility of the Fund’s netasset value in both up and down markets. However, we believe that locking in portions of theFund’s leveraging costs for the various terms partially protects the Fund’s expenses from anincrease in short-term interest rates.

Leverage Factsb,c

Leverage (as a % of managed assets) . . . . . . . . . . . . . . . . . . . . . . . . . 29%% Fixed Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85%% Variable Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15%Weighted Average Rate on Financing . . . . . . . . . . . . . . . . . . . . . . . . . . 2.0%a

Weighted Average Term on Financing . . . . . . . . . . . . . . . . . . . . . . . . . 4.0 yearsa

The Fund seeks to enhance its dividend yield through leverage. The use of leverage is a speculativetechnique and there are special risks and costs associated with leverage. The net asset value of theFund’s shares may be reduced by the issuance and ongoing costs of leverage. So long as the Fundis able to invest in securities that produce an investment yield that is greater than the total cost ofleverage, the leverage strategy will produce higher current net investment income for shareholders.On the other hand, to the extent that the total cost of leverage exceeds the incremental incomegained from employing such leverage, shareholders would realize lower net investment income. Inaddition to the impact on net income, the use of leverage will have an effect of magnifying capitalappreciation or depreciation for shareholders. Specifically, in an up market, leverage will typicallygenerate greater capital appreciation than if the Fund were not employing leverage. Conversely, indown markets, the use of leverage will generally result in greater capital depreciation than if theFund had been unlevered. To the extent that the Fund is required or elects to reduce its leverage,the Fund may need to liquidate investments, including under adverse economic conditions whichmay result in capital losses potentially reducing returns to shareholders. There can be no assurancethat a leveraging strategy will be successful during any period in which it is employed.

a On February 24, 2015, the Fund amended its credit agreement to extend the fixed rate financingterms, originally expiring in 2017, 2018 and 2019, by three years, now expiring in 2020, 2021 and2022. The weighted average rate on financing does not include the three year extension and willincrease as the extended fixed-rate tranches become effective. The weighted average term of financingincludes the three year extension.

b Data as of June 30, 2017. Information is subject to change.c See Note 6 in Notes to Financial Statements.

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June 30, 2017Top Ten Holdingsa

(Unaudited) % of ManagedSecurity Value Assets NextEra Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $118,770,264 4.0American Tower Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,911,459 3.6Crown Castle International Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,892,357 3.6TransCanada Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,242,379 2.9Sempra Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,651,017 2.6CMS Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,199,488 2.4Xcel Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,637,397 2.2Atlantia S.p.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,434,952 2.1Edison International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,404,768 2.1Kinder Morgan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,296,192 2.1

a Top ten holdings are determined on the basis of the value of individual securities held. The Fundmay also hold positions in other types of securities issued by the companies listed above. Seethe Schedule of Investments for additional details on such other positions.

Country Breakdown(Based on Managed Assets)

(Unaudited)

United States 52.0%

United Kingdom 3.9%

Italy 4.7%

Canada 7.2%

Spain 2.9%France 2.9%

Hong Kong 2.5%

Australia 4.8%

Japan 6.1%

Other 13.0%

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Merrill Corp - Cohen _ Steers Infrastructure Fund Semi-Annual Report [Funds] 333-160353 06-30-2017 ED [AUX] | pweakly | 28-Aug-17 15:57 | 17-15860-2.ba | Sequence: 6CHKSUM Content: 64306 Layout: 65001 Graphics: 59900 CLEAN

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COMMON STOCK 111.2% AUSTRALIA 6.0%

ELECTRIC—REGULATED ELECTRIC 1.5% Spark Infrastructure Group . . . . . . . . . . . . . . . . . . . . . . 15,523,462 $ 31,260,089

PIPELINES—C-CORP 0.9% APA Groupa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,664,106 18,776,782

RAILWAYS 0.8% Aurizon Holdings Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . 4,313,365 17,769,751

TOLL ROADS 2.8% Transurban Groupa . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,655,811 60,620,522TOTAL AUSTRALIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,427,144

BRAZIL 2.4% WATER

Cia de Saneamento Basico do Estado de Sao Pauloa . . 5,261,843 50,285,233CANADA 9.2%

PIPELINES—C-CORP 7.4% Enbridgea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425,140 16,936,098Kinder Morgan Canada Ltd., 144Ab,c . . . . . . . . . . . . . . 893,700 10,909,370Pembina Pipeline Corp. . . . . . . . . . . . . . . . . . . . . . . . . 1,259,351 41,709,690TransCanada Corp.a . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,830,086 87,242,379 156,797,537

RAILWAYS 1.8% Canadian Pacific Railway Ltd.a . . . . . . . . . . . . . . . . . . 239,472 38,530,099TOTAL CANADA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195,327,636

CHINA 1.2% TOLL ROADS

Jiangsu Expressway Co., Ltd., Class H (HKD) . . . . . . 18,390,000 25,956,977FRANCE 2.8%

AIRPORTS 1.6% Aeroports de Paris . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209,260 33,771,582

TOLL ROADS 1.2% Vinci SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294,845 25,165,859TOTAL FRANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,937,441

See accompanying notes to financial statements.

SCHEDULE OF INVESTMENTSJune 30, 2017 (Unaudited)

Number of Shares/Units Value


Merrill Corp - Cohen _ Steers Infrastructure Fund Semi-Annual Report [Funds] 333-160353 06-30-2017 ED [AUX] | pweakly | 22-Aug-17 17:53 | 17-15860-2.ca | Sequence: 1CHKSUM Content: 55005 Layout: 49501 Graphics: No Graphics CLEAN


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GERMANY 0.8% ELECTRIC—REGULATED ELECTRIC

Innogy SE, 144Ab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440,864 $ 17,354,253HONG KONG 3.5%

ELECTRIC—REGULATED ELECTRIC 2.9% CLP Holdings Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,806,000 61,425,382

MARINE PORTS 0.6% China Merchants Port Holdings Co., Ltd. . . . . . . . . . . . 4,664,000 12,933,237TOTAL HONG KONG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,358,619

INDIA 0.2% TOLL ROADS

IRB InvIT Fund, 144Ab,c . . . . . . . . . . . . . . . . . . . . . . . . 2,050,000 3,108,103ITALY 6.1%

COMMUNICATIONS—TOWERS 1.9% Ei Towers S.p.A.a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,957 13,187,285Infrastrutture Wireless Italiane S.p.A., 144Ab . . . . . . . . 4,805,975 27,302,996 40,490,281

PIPELINES—C-CORP 1.2% Snam S.p.A.a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,968,161 26,011,890

TOLL ROADS 3.0% Atlantia S.p.A.a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,254,057 63,434,952TOTAL ITALY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129,937,123

JAPAN 7.9% ELECTRIC—INTEGRATED ELECTRIC 2.4%

Kyushu Electric Power Co. . . . . . . . . . . . . . . . . . . . . . . 2,262,800 27,441,291Tohoku Electric Power Co. . . . . . . . . . . . . . . . . . . . . . . 1,796,800 24,841,289 52,282,580

GAS DISTRIBUTION 0.9% Tokyo Gas Co., Ltd.a . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,574,000 18,566,688

RAILWAYS 4.6% Central Japan Railway Co.a . . . . . . . . . . . . . . . . . . . . . 354,899 57,774,623West Japan Railway Co. . . . . . . . . . . . . . . . . . . . . . . . . 571,300 40,309,729 98,084,352TOTAL JAPAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168,933,620

SCHEDULE OF INVESTMENTS—(Continued)June 30, 2017 (Unaudited)





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MEXICO 2.3% AIRPORTS 1.6%

Grupo Aeroportuario del Pacifico SAB de CV, B Shares . . . . . . . . . . . . . . . . . . . . . . . . 3,101,529 $ 34,948,009

TOLL ROADS 0.7% OHL Mexico SAB de CVa . . . . . . . . . . . . . . . . . . . . . . . 9,876,320 14,246,825TOTAL MEXICO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,194,834

NEW ZEALAND 2.0% AIRPORTS

Auckland International Airport Ltd.a . . . . . . . . . . . . . . . 8,083,747 42,236,473SPAIN 3.9%

ELECTRIC—REGULATED ELECTRIC 1.1% Red Electrica Corp. SA . . . . . . . . . . . . . . . . . . . . . . . . 1,115,831 23,315,990

TOLL ROADS 2.8% Abertis Infraestructuras SA . . . . . . . . . . . . . . . . . . . . . 887,814 16,447,347Ferrovial SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,976,152 43,865,987 60,313,334TOTAL SPAIN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,629,324

SWITZERLAND 2.1% AIRPORTS

Flughafen Zuerich AGa . . . . . . . . . . . . . . . . . . . . . . . . . 178,245 43,757,298THAILAND 0.4%

AIRPORTS

Airports of Thailand PCL . . . . . . . . . . . . . . . . . . . . . . . 5,397,500 7,507,562UNITED KINGDOM 2.4%

ELECTRIC—REGULATED ELECTRIC 1.5% National Grid PLC 2,636,155 32,679,664

WATER 0.9% United Utilities Group PLCa . . . . . . . . . . . . . . . . . . . . . 1,615,500 18,253,132TOTAL UNITED KINGDOM . . . . . . . . . . . . . . . . . . . . . . . . . . 50,932,796






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UNITED STATES 58.0% COMMUNICATIONS—TOWERS 10.1%

American Tower Corp.a,d . . . . . . . . . . . . . . . . . . . . . . . 815,534 $ 107,911,459Crown Castle International Corp.a . . . . . . . . . . . . . . . . 1,076,985 107,892,357 215,803,816

DIVERSIFIED 1.6% Macquarie Infrastructure Co. LLCa,d . . . . . . . . . . . . . . 441,456 34,610,150

ELECTRIC 25.4% INTEGRATED ELECTRIC 6.6%

NextEra Energya,d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 847,572 118,770,264Pattern Energy Groupa,d . . . . . . . . . . . . . . . . . . . . . . . . 885,401 21,107,960 139,878,224

REGULATED ELECTRIC 18.8% Alliant Energy Corp.a,d . . . . . . . . . . . . . . . . . . . . . . . . . 862,636 34,652,088CMS Energy Corp.a,d . . . . . . . . . . . . . . . . . . . . . . . . . . 1,561,070 72,199,488DTE Energy Co.a,d . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314,260 33,245,565Edison Internationala,d . . . . . . . . . . . . . . . . . . . . . . . . . 798,117 62,404,768Great Plains Energya,d . . . . . . . . . . . . . . . . . . . . . . . . . 773,399 22,645,123PG&E Corp.a,d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 854,893 56,739,249WEC Energy Groupa,d . . . . . . . . . . . . . . . . . . . . . . . . . 836,343 51,334,733Xcel Energya,d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,452,428 66,637,397 399,858,411TOTAL ELECTRIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 539,736,635

GAS DISTRIBUTION 7.1% Atmos Energy Corp.a,d . . . . . . . . . . . . . . . . . . . . . . . . . 635,845 52,743,343NiSourcea,d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 749,147 18,998,368Sempra Energya,d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 697,570 78,651,017 150,392,728






11


PIPELINES 6.4% PIPELINES—C-CORP 5.6%

Antero Midstream GP LPc . . . . . . . . . . . . . . . . . . . . . . . 647,342 $ 14,228,577Cheniere Energya,c,d . . . . . . . . . . . . . . . . . . . . . . . . . . . 414,896 20,209,584Kinder Morgana,d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,251,367 62,296,192ONEOKa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458,594 23,920,263 120,654,616

PIPELINES—MLP 0.8% Hess Midstream Partners LPa,c . . . . . . . . . . . . . . . . . . 463,262 9,436,647Rice Midstream Partners LPa . . . . . . . . . . . . . . . . . . . . 356,182 7,102,269 16,538,916TOTAL PIPELINES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137,193,532

RAILWAYS 4.9% CSX Corp.a,d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731,107 39,889,198Norfolk Southern Corp.a . . . . . . . . . . . . . . . . . . . . . . . . 127,204 15,480,727Union Pacific Corp.a,d . . . . . . . . . . . . . . . . . . . . . . . . . . 450,689 49,084,539 104,454,464

WATER 2.5% American Water Works Co.a,d . . . . . . . . . . . . . . . . . . . . 669,966 52,223,850TOTAL UNITED STATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,234,415,175

TOTAL COMMON STOCK

(Identified cost—$1,816,588,795) . . . . . . . . . . 2,364,299,611PREFERRED SECURITIES—$25 PAR VALUE 7.3%

UNITED KINGDOM 0.1% BANKS—FOREIGN

National Westminster Bank PLC, 7.763%, Series C (USD)a,e . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,457 2,899,496






12


UNITED STATES 7.2% BANKS 3.3%

Bank of America Corp., 6.20%, Series CCe . . . . . . . . . 142,525 $ 3,821,095Bank of America Corp., 6.00%, Series EEe . . . . . . . . . 150,000 4,005,000Bank of America Corp., 6.50%, Series Ya,e . . . . . . . . . 214,496 5,774,233BB&T Corp., 5.625%e . . . . . . . . . . . . . . . . . . . . . . . . . . 113,228 3,045,833Capital One Financial Corp., 6.70%, Series De . . . . . . 85,825 2,354,180Citigroup, 6.875%, Series Ke . . . . . . . . . . . . . . . . . . . . 160,000 4,734,400Citigroup, 6.30%, Series Se . . . . . . . . . . . . . . . . . . . . . 167,743 4,478,738GMAC Capital Trust I, 6.967%, due 2/15/40,

Series 2 (TruPS) (FRN) (3 Mo. US LIBOR + 5.785%)f . 224,902 5,892,433Huntington Bancshares, 6.25%, Series De . . . . . . . . . . 123,494 3,392,380JPMorgan Chase & Co., 6.10%, Series AAa,d,e . . . . . . 196,847 5,340,459JPMorgan Chase & Co., 6.125%, Series Ya,e . . . . . . . . 200,000 5,390,000New York Community Bancorp, 6.375%, Series Ae . . . 108,000 3,088,800Regions Financial Corp., 6.375%, Series Ba,d,e . . . . . . 98,085 2,856,235Wells Fargo & Co., 5.85%a,e . . . . . . . . . . . . . . . . . . . . . 200,000 5,532,000Wells Fargo & Co., 6.00%, Series Ta,e . . . . . . . . . . . . . 150,000 3,946,500Wells Fargo & Co., 5.70%, Series Wa,d,e . . . . . . . . . . . . 170,971 4,428,149Wells Fargo & Co., 5.625%, Series Ye . . . . . . . . . . . . . 99,275 2,552,360 70,632,795


Integrys Holdings, 6.00%, due 8/1/73a . . . . . . . . . . . . 234,338 6,330,055NextEra Energy Capital Holdings, 5.25%,

due 6/1/76, Series Ka . . . . . . . . . . . . . . . . . . . . . . . . 183,056 4,636,809Southern Co./The, 6.25%, due 10/15/75a,d . . . . . . . . . 200,000 5,472,000 16,438,864

REGULATED ELECTRIC 0.2% DTE Energy Co., 5.375%, due 6/1/76, Series Ba . . . . . 176,011 4,454,838TOTAL ELECTRIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,893,702

FINANCIAL 0.8% DIVERSIFIED FINANCIAL SERVICES 0.2%

KKR & Co. LP, 6.75%, Series Aa,e . . . . . . . . . . . . . . . . . 112,000 3,056,480






13


INVESTMENT BANKER/BROKER 0.6% Charles Schwab Corp./The, 5.95%, Series Da,e . . . . . . 75,000 $ 2,045,250Morgan Stanley, 6.375%, Series Ie . . . . . . . . . . . . . . . . 125,000 3,567,500Morgan Stanley, 5.85%, Series Ke . . . . . . . . . . . . . . . . 99,200 2,710,144Morgan Stanley, 6.875%e . . . . . . . . . . . . . . . . . . . . . . . 157,745 4,620,351 12,943,245TOTAL FINANCIAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,999,725

INDUSTRIALS—CHEMICALS 0.4% CHS, 7.10%, Series IIe . . . . . . . . . . . . . . . . . . . . . . . . . 135,283 3,980,026CHS, 6.75%a,e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137,935 3,900,802 7,880,828

INSURANCE 0.3% LIFE/HEALTH INSURANCE 0.1%

Prudential Financial, 5.75%, due 12/15/52 . . . . . . . . . . 73,926 1,921,337MULTI-LINE 0.2%

Hanover Insurance Group/The, 6.35%, due 3/30/53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,237 2,125,826

Hartford Financial Services Group, 7.875%, due 4/15/42a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,768 2,575,866

4,701,692TOTAL INSURANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,623,029

INTEGRATED TELECOMMUNICATIONS SERVICES 0.1% Qwest Corp., 6.75%, due 6/15/57 . . . . . . . . . . . . . . . . 85,800 2,174,172

PIPELINES 0.1% NuStar Energy LP, 7.625%, Series Be . . . . . . . . . . . . . 80,000 2,012,000

REAL ESTATE—DIVERSIFIED 0.6% Coresite Realty Corp., 7.25%, Series Aa,e . . . . . . . . . . 99,000 2,532,420Retail Properties of America, 7.00%e . . . . . . . . . . . . . . 99,400 2,540,664Saul Centers, 6.875%, Series Ce . . . . . . . . . . . . . . . . . 79,140 2,041,020VEREIT, 6.70%, Series Fa,e . . . . . . . . . . . . . . . . . . . . . . 247,888 6,591,342 13,705,446

TECHNOLOGY—SOFTWARE 0.1% eBay, 6.00%, due 2/1/56a . . . . . . . . . . . . . . . . . . . . . . . 95,400 2,611,098






14


UTILITIES 0.5% Dominion Resources, 5.25%, due 7/30/76,

Series A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179,306 $ 4,513,132SCE Trust IV, 5.375%, Series Je . . . . . . . . . . . . . . . . . . 111,918 3,161,684SCE Trust VI, 5.00%e . . . . . . . . . . . . . . . . . . . . . . . . . . 104,000 2,585,440 10,260,256TOTAL UNITED STATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152,793,051

TOTAL PREFERRED SECURITIES—$25 PAR VALUE

(Identified cost—$144,594,574) . . . . . . . . . . . 155,692,547 Principal Amount

PREFERRED SECURITIES—CAPITAL SECURITIES 17.0% AUSTRALIA 0.7%

BANKS—FOREIGN 0.3% Australia & New Zealand Banking Group

Ltd./United Kingdom, 6.75%, 144A (USD)b,e . . . . . . $ 4,000,000 4,427,448Macquarie Bank Ltd./London,

6.125%, 144A (USD)b,e . . . . . . . . . . . . . . . . . . . . . . 1,600,000 1,640,000 6,067,448

INSURANCE-PROPERTY CASUALTY 0.3% QBE Insurance Group Ltd., 6.75%,

due 12/2/44 (USD) . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,467,000QBE Insurance Group Ltd., 5.875%,

due 6/17/46, Series EMTN (USD) . . . . . . . . . . . . . . 1,800,000 1,922,233 6,389,233

MATERIAL—METALS & MINING 0.1% BHP Billiton Finance USA Ltd., 6.75%,

due 10/19/75, 144A (USD)b . . . . . . . . . . . . . . . . . . . 2,000,000 2,290,180TOTAL AUSTRALIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,746,861






15


CANADA 0.9% PIPELINES 0.5%

Transcanada Trust, 5.625%, due 5/20/75 (USD) . . . . . $ 2,000,000 $ 2,117,620Transcanada Trust, 5.875%, due 8/15/76,

Series 16-A (USD)a . . . . . . . . . . . . . . . . . . . . . . . . . 4,990,000 5,427,623Transcanada Trust, 5.30%, due 3/15/77 (USD) . . . . . . 2,475,000 2,548,941 10,094,184

UTILITIES—ELECTRIC UTILITIES 0.4% Emera, 6.75%, due 6/15/76, Series 16-A (USD)a . . . . . 8,250,000 9,363,750TOTAL CANADA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,457,934

DENMARK 0.1% BANKS—FOREIGN

Danske Bank A/S, 6.125% (USD)e . . . . . . . . . . . . . . . . 2,600,000 2,723,760FRANCE 1.2%

BANKS—FOREIGN 1.1% BNP Paribas, 7.195%, 144A (USD)a,b,e . . . . . . . . . . . . 3,000,000 3,453,750BNP Paribas SA, 7.375%, 144A (USD)b,e . . . . . . . . . . . 1,800,000 2,004,750BNP Paribas SA, 7.625%, 144A (USD)a,b,e . . . . . . . . . 5,800,000 6,394,500Credit Agricole SA, 8.125%, 144A (USD)a,b,e . . . . . . . . 4,950,000 5,767,864Societe Generale SA, 7.375%, 144A (USD)a,b,e . . . . . . 2,600,000 2,801,500Societe Generale SA, 8.25%, Series EMTN (USD)e . . . 2,400,000 2,551,908 22,974,272

INSURANCE—LIFE/HEALTH INSURANCE 0.1% La Mondiale Vie, 7.625% (USD)e . . . . . . . . . . . . . . . . . 3,250,000 3,489,788TOTAL FRANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,464,060

GERMANY 0.2% BANKS—FOREIGN

Dresdner Funding Trust I, 8.151%, due 6/30/31, 144A (USD)a,b . . . . . . . . . . . . . . . . . . . 3,088,000 3,892,257

ITALY 0.5% UTILITIES—ELECTRIC UTILITIES

Enel SpA, 8.75%, due 9/24/73, 144A (USD)a,b . . . . . . . 8,635,000 10,297,237


Principal Amount Value




16


JAPAN 0.6% INSURANCE

LIFE/HEALTH INSURANCE 0.4% Dai-ichi Life Insurance Co. Ltd.,

5.10%, 144A (USD)a,b,e . . . . . . . . . . . . . . . . . . . . . . $ 2,800,000 $ 2,980,600Nippon Life Insurance Co., 4.70%,

due 1/20/46, 144A (USD)a,b . . . . . . . . . . . . . . . . . . . 2,400,000 2,517,000Nippon Life Insurance Co., 5.10%,

due 10/16/44, 144A (USD)a,b . . . . . . . . . . . . . . . . . . 3,800,000 4,056,500 9,554,100

LIFE/HEALTH INSURANCE—FOREIGN 0.2% Meiji Yasuda Life Insurance Co., 5.20%,

due 10/20/45, 144A (USD)a,b . . . . . . . . . . . . . . . . . . 3,600,000 3,870,000TOTAL JAPAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,424,100

NETHERLANDS 0.7% BANKS—FOREIGN 0.6%

ING Groep N.V., 6.875% (USD)e . . . . . . . . . . . . . . . . . 3,600,000 3,853,958Rabobank Nederland, 11.00%, 144A (USD)a,b,e . . . . . 8,120,000 9,461,830 13,315,788

INSURANCE—LIFE/HEALTH INSURANCE—FOREIGN 0.1% Demeter BV (Swiss Re Ltd.), 5.75%,

due 8/15/50 (USD) . . . . . . . . . . . . . . . . . . . . . . . . . . 2,200,000 2,382,998TOTAL NETHERLANDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,698,786

NORWAY 0.2% BANKS—FOREIGN

DNB Bank ASA, 6.50% (USD)e . . . . . . . . . . . . . . . . . . 3,000,000 3,214,860SPAIN 0.1%

BANKS—FOREIGN Banco Bilbao Vizcaya Argentaria SA, 9.00% (USD)e . . 2,400,000 2,513,986

SWEDEN 0.2% BANKS—FOREIGN

Swedbank AB, 6.00% (USD)e . . . . . . . . . . . . . . . . . . . 3,000,000 3,161,082






17


SWITZERLAND 1.1% BANKS—FOREIGN 0.9%

Credit Suisse Group AG, 7.125% (USD)e . . . . . . . . . . . $ 4,800,000 $ 5,168,400Credit Suisse Group AG, 7.50%, 144A (USD)b,e . . . . . 2,391,000 2,686,922UBS Group AG, 6.875% (USD)e . . . . . . . . . . . . . . . . . . 1,800,000 1,921,511UBS Group AG, 6.875% (USD)e . . . . . . . . . . . . . . . . . . 1,800,000 1,945,827UBS Group AG, 7.125% (USD)e . . . . . . . . . . . . . . . . . . 5,046,000 5,355,062UBS Group AG, 7.125% (USD)e . . . . . . . . . . . . . . . . . . 1,600,000 1,731,600 18,809,322

INSURANCE—REINSURANCE—FOREIGN 0.2% Aquarius + Investments PLC, 8.25% (USD)e . . . . . . . . 4,000,000 4,251,908TOTAL SWITZERLAND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,061,230

UNITED KINGDOM 2.9% BANKS—FOREIGN

Barclays PLC, 7.875% (USD)e . . . . . . . . . . . . . . . . . . . 2,600,000 2,803,814Barclays PLC, 8.25% (USD)a,e . . . . . . . . . . . . . . . . . . . 4,161,000 4,421,062HBOS Capital Funding LP, 6.85% (USD)e . . . . . . . . . . 2,400,000 2,460,360HSBC Capital Funding LP, 10.176%, 144A (USD)a,b,e . . 9,750,000 15,362,295HSBC Holdings PLC, 6.375% (USD)e . . . . . . . . . . . . . 1,400,000 1,493,100HSBC Holdings PLC, 6.875% (USD)a,e . . . . . . . . . . . . 3,800,000 4,113,500Lloyds Banking Group PLC, 7.50% (USD)e . . . . . . . . . 4,334,000 4,791,779Nationwide Building Society, 10.25% . . . . . . . . . . . . . . 6,030,000 11,859,195Royal Bank of Scotland Group PLC, 7.648% (USD)a,e . . 2,004,000 2,479,950Royal Bank of Scotland Group PLC, 8.625% (USD)a,e . . 7,400,000 8,084,500Standard Chartered PLC, 7.50%, 144A (USD)b,e . . . . . 2,200,000 2,359,500Standard Chartered PLC, 7.75%, 144A (USD)b,e . . . . . 2,200,000 2,367,750TOTAL UNITED KINGDOM . . . . . . . . . . . . . . . . . . . . . . . . . . 62,596,805






18


UNITED STATES 7.6% BANKS 4.1%

AgriBank FCB, 6.875%a,e . . . . . . . . . . . . . . . . . . . . . . . 37,000† $ 4,043,408Bank of America Corp., 6.10%, Series AAe . . . . . . . . . $ 1,013,000 1,101,739Bank of America Corp., 6.30%, Series DDa,e . . . . . . . . 4,500,000 5,056,875Bank of America Corp., 6.50%, Series Za,e . . . . . . . . . 5,169,000 5,754,027Citigroup, 6.125%, Series Ra,e . . . . . . . . . . . . . . . . . . . 4,225,000 4,547,156Citigroup, 6.25%, Series Te . . . . . . . . . . . . . . . . . . . . . . 5,100,000 5,664,188CoBank ACB, 6.25%, 144A, Series Fa,b,e . . . . . . . . . . . 52,500† 5,482,969CoBank ACB, 6.25%, Series Ie . . . . . . . . . . . . . . . . . . . 2,866,000 3,159,848Farm Credit Bank of Texas, 6.75%, 144Aa,b,e . . . . . . . . 35,300† 3,856,525Farm Credit Bank of Texas, 10.00%, 144A,

Series Ia,b,e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000† 8,607,812JPMorgan Chase & Co., 7.90%, Series Ia,d,e . . . . . . . . 7,220,000 7,514,215JPMorgan Chase & Co., 6.75%, Series Sa,e . . . . . . . . . 6,000,000 6,825,000JPMorgan Chase & Co., 5.30%, Series Ze . . . . . . . . . . 4,850,000 5,062,188PNC Financial Services Group, 6.75%e . . . . . . . . . . . . 3,000,000 3,386,250US Bancorp, 5.125%, Series Ie . . . . . . . . . . . . . . . . . . 2,100,000 2,237,130Wells Fargo & Co., 7.98%, Series Ka,e . . . . . . . . . . . . . 4,250,000 4,420,000Wells Fargo & Co., 5.875%, Series Ua,e . . . . . . . . . . . . 7,320,000 8,075,570Wells Fargo Capital X, 5.95%,

due 12/1/86, (TruPS) . . . . . . . . . . . . . . . . . . . . . . . . 2,830,000 3,207,805 88,002,705


Southern California Edison Co., 6.25%, Series Ee . . . . 4,150,000 4,606,500REGULATED ELECTRIC 0.2%

Southern Co./The, 5.50%, due 3/15/57, Series B . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,167,517

TOTAL ELECTRIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,774,017FINANCIAL 0.2%

DIVERSIFIED FINANCIAL SERVICES 0.1% National Rural Utilities Cooperative Finance Corp.,

5.25%, due 4/20/46 . . . . . . . . . . . . . . . . . . . . . . . . . 1,764,000 1,860,165






19


INVESTMENT BANKER/BROKER 0.1% Morgan Stanley, 5.55%, Series Je . . . . . . . . . . . . . . . . $ 3,000,000 $ 3,138,000TOTAL FINANCIAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,998,165

FOOD 0.3% Dairy Farmers of America, 7.875%, 144Aa,b,e,g . . . . . . 60,000† 6,391,878

INDUSTRIALS—DIVERSIFIED MANUFACTURING 0.7% General Electric Co., 5.00%, Series Da,d,e . . . . . . . . . . 13,407,000 14,246,949

INSURANCE 1.3% LIFE/HEALTH INSURANCE 1.0%

MetLife, 9.25%, due 4/8/38, 144Aa,b . . . . . . . . . . . . . . 6,500,000 9,701,250MetLife, 5.25%, Series Ce . . . . . . . . . . . . . . . . . . . . . . . 5,200,000 5,411,744MetLife Capital Trust IV, 7.875%,

due 12/15/37, 144Aa,b . . . . . . . . . . . . . . . . . . . . . . . 4,500,000 6,097,950 21,210,944

PROPERTY CASUALTY 0.3% Liberty Mutual Group, 7.80%, due 3/7/37, 144Ab . . . . 4,500,000 5,616,585TOTAL INSURANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,827,529

INTEGRATED TELECOMMUNICATIONS SERVICES 0.5% Centaur Funding Corp., 9.08%, due 4/21/20, 144Aa,b . . 8,989 10,446,903

MEDIA 0.1% Viacom, 5.875%, due 2/28/57 . . . . . . . . . . . . . . . . . . . 1,800,000 1,873,926TOTAL UNITED STATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,562,072

TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES

(Identified cost—$322,711,766) . . . . . . . . . . . 361,815,030






20

Note: Percentages indicated are based on the net assets of the Fund.† Represents shares.a All or a portion of the security is pledged as collateral in connection with the Fund’s credit agreement.

$1,728,271,687 in aggregate has been pledged as collateral.b Resale is restricted to qualified institutional investors. Aggregate holdings amounting to $203,508,477

or 9.6% of the net assets of the Fund, of which 0.3% are illiquid.c Non-income producing security.d A portion of the security has been rehypothecated in connection with the Fund’s credit agreement.

$764,048,603 in aggregate has been rehypothecated.e Perpetual security. Perpetual securities pay an indefinite stream of interest, but they may be called

earlier by the issuer.f Variable rate. Rate shown is in effect at June 30, 2017.g Security value is determined based on significant unobservable inputs (Level 3).h Rate quoted represents the annualized seven-day yield of the fund.


SHORT-TERM INVESTMENTS 2.8% MONEY MARKET FUNDS

State Street Institutional Treasury Money Market Fund, Premier Class, 0.83%h . . . . . . . . . . . . . . . . . . 59,000,000 $ 59,000,000

TOTAL SHORT-TERM INVESTMENTS

(Identified cost—$59,000,000) . . . . . . . . . . . . 59,000,000

TOTAL INVESTMENTS (Identified cost—$2,342,895,135) . . . 138.3% 2,940,807,188LIABILITIES IN EXCESS OF OTHER ASSETS . . . . . . . . . . . . . . . . (38.3) (813,840,346) NET ASSETS (Equivalent to $24.93 per share based on

85,319,794 shares of common stock outstanding) . . . 100.0% $2,126,966,842

Glossary of Portfolio Abbreviations

FRN Floating Rate NoteHKD Hong Kong DollarLIBOR London Interbank Offered RateMLP Master Limited PartnershipTruPS Trust Preferred SecuritiesUSD United States Dollar


Number of Shares Value





Electric (Common) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.5Pipelines (Common) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.4Railways (Common) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7Communications (Common) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.6Toll Roads (Common) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.5Gas Distribution (Common) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7Airports (Common) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4Banks (Preferred) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.9Banks—Foreign (Preferred) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.8Water (Common) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.0Insurance (Preferred) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1Diversified (Common) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2Utilities (Preferred) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0Electric (Preferred) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0Industrials (Preferred) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7Financial (Preferred) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7Real Estate (Preferred) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 100.0


% of ManagedSector Summary Assets

21




22

a Includes $764,048,603 which has been rehypothecated in connection with the Fund’s credit agreement,as described in Note 6.


ASSETS:Investments in securities, at valuea (Identified cost—$2,342,895,135) . . . . . . . . $2,940,807,188Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,755,881Foreign currency, at value (Identified cost—$1,978,556) . . . . . . . . . . . . . . . . . . . 1,972,354Receivable for:

Dividends and interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,092,124Investment securities sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,924,559

Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,112Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,990,617,218

LIABILITIES:Payable for:

Credit agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 850,000,000Investment securities purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,485,936Investment management fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,099,577Dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454,318Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,897Administration fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,498Directors’ fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176

Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 424,974Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 863,650,376

NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,126,966,842

NET ASSETS consist of:Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,476,575,248Dividends in excess of net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . (32,689,504)Accumulated undistributed net realized gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,248,981Net unrealized appreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 597,832,117

$2,126,966,842NET ASSET VALUE PER SHARE:($2,126,966,842 ÷ 85,319,794 shares outstanding) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24.93

MARKET PRICE PER SHARE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23.63

MARKET PRICE PREMIUM (DISCOUNT) TO NET ASSET VALUE PER SHARE . . . . . . (5.21)%

STATEMENT OF ASSETS AND LIABILITIESJune 30, 2017 (Unaudited)


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Investment Income:Dividend income (net of $2,051,426 of foreign withholding tax) . . . . . . . . . . . . . . . $ 48,885,101Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,647,400Rehypothecation income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,201

Total Investment Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,622,702Expenses:

Investment management fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,147,954Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,406,577Administration fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720,055Reports to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379,957Custodian fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203,192Professional fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,135Directors’ fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,666Transfer agent fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,916Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139,637

Total Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,163,089Net Investment Income (Loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,459,613Net Realized and Unrealized Gain (Loss):

Net realized gain (loss) on:Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,553,097Foreign currency transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (392,598)

Net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,160,499Net change in unrealized appreciation (depreciation) on:

Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239,157,374Foreign currency translations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,128

Net change in unrealized appreciation (depreciation) . . . . . . . . . . . . . . . . . . 239,252,502Net Realized and Unrealized Gain (Loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282,413,001

Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . . . . . . . . . . . $318,872,614

STATEMENT OF OPERATIONSFor the Six Months Ended June 30, 2017 (Unaudited)




24

a Includes dividends in excess of net investment income of $32,689,504 and $552,003, respectively.


For the Six For the Months Ended Year Ended June 30, 2017 December 31, 2016

Change in Net Assets:From Operations:

Net investment income (loss) . . . . . . . . . . . . . . . . . . . $ 36,459,613 $ 58,779,653Net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . 43,160,499 106,743,836Net change in unrealized appreciation

(depreciation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239,252,502 (10,772,326) Net increase (decrease) in net assets resulting

from operations . . . . . . . . . . . . . . . . . . . . . . . 318,872,614 154,751,163 Dividends and Distributions to Shareholders from:

Net investment income . . . . . . . . . . . . . . . . . . . . . . . (68,597,114) (53,096,105)Net realized gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (120,444,355)

Total dividends and distributions to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . (68,597,114) (173,540,460)

Total increase (decrease) in net assets . . . . . . . 250,275,500 (18,789,297)Net Assets:

Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . 1,876,691,342 1,895,480,639 End of perioda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,126,966,842 $1,876,691,342

STATEMENT OF CHANGES IN NET ASSETS (Unaudited)



JOB: 17-15860-2 CYCLE#;BL#: 12; 0 TRIM: 7.75" x 8.75" COMPOSITECOLORS: Black, PANTONE Black 7 U, ~note-color 2, ~note-color 3 GRAPHICS: none V1.5

25


Increase (Decrease) in Cash:Cash Flows from Operating Activities:Net increase (decrease) in net assets resulting from operations . . . . . . . . . . . . . $ 318,872,614Adjustments to reconcile net increase (decrease) in net assets resulting

from operations to net cash provided by operating activities:Purchases of long-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (612,889,936)Proceeds from sales and maturities of long-term investments . . . . . . . . . . 655,497,837Net purchases, sales and maturities of short-term investments . . . . . . . . . (4,300,000)Net amortization of premium on investments . . . . . . . . . . . . . . . . . . . . . . . . 467,720Net non-cash dividends received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (636,796)Net increase in dividends and interest receivable and other assets . . . . . . (1,827,817)Net decrease in interest expense payable, accrued expenses

and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (105,891)Net change in unrealized appreciation on investments . . . . . . . . . . . . . . . . (239,157,374)Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (43,553,097)

Cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,367,260Cash Flows from Financing Activities:Dividends and distributions paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (105,471,473)Increase (decrease) in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33,104,213)Cash at beginning of period (including foreign currency) . . . . . . . . . . . . . . . . . . 54,832,448Cash at end of period (including foreign currency) . . . . . . . . . . . . . . . . . . . . . . . $ 21,728,235

Supplemental Disclosure of Cash Flow Information and Non-Cash Activities:

During the six months ended June 30, 2017, interest paid was $8,449,201.

During the six months ended June 30, 2017, as part of an exchange offer from one of the Fund’sinvestments, the Fund received shares of a new security valued at $4,710,272.

STATEMENT OF CASH FLOWSFor the Six Months Ended June 30, 2017 (Unaudited)




26


FINANCIAL HIGHLIGHTS (Unaudited)

The following table includes selected data for a share outstanding throughout each period andother performance information derived from the financial statements. It should be read in conjunctionwith the financial statements and notes thereto. For the Six

For the Year Ended December 31, Months Ended Per Share Operating Performance: June 30, 2017 2016 2015 2014 2013 2012 Net asset value,

beginning of period . . . . . . . . . $ 22.00 $ 22.22 $ 25.79 $ 23.43 $ 20.58 $ 17.86 Income (loss) from investment

operations:Net investment income (loss) 0.43a 0.69a 0.68a 0.72a 0.61a 0.80Net realized and unrealized

gain (loss) . . . . . . . . . . . . . 3.30 1.12 (2.66) 3.12 3.67b 3.36 Total from investment

operations . . . . . . . . . 3.73 1.81 (1.98) 3.84 4.28 4.16 Less dividends and distributions

to shareholders from:Net investment income . . . . . (0.80) (0.62) (0.72) (0.69) (0.71) (0.92)Net realized gain . . . . . . . . . . — (1.41) (0.88) (0.79) (0.73) —Return of capital . . . . . . . . . . — — — — — (0.52)

Total dividends and distributions to shareholders . . . . . . . (0.80) (2.03) (1.60) (1.48) (1.44) (1.44)

Anti-dilutive effect from the repurchase of shares . . . . . . . . — — 0.01 — 0.01 —

Net increase (decrease) in net asset value . . . . . . . . . . . . . . . . 2.93 (0.22) (3.57) 2.36 2.85 2.72

Net asset value, end of period . . . $ 24.93 $ 22.00 $ 22.22 $ 25.79 $ 23.43 $ 20.58 Market value, end of period . . . . . $ 23.63 $ 19.36 $ 19.08 $ 22.72 $ 20.60 $ 18.75

Total net asset value returnc . . . . . 17.50%d 9.22% –6.85% 17.27% 22.30% 24.65% Total market value returnc. . . . . . . 26.56%d 11.93% –9.21% 17.51% 18.02% 28.37%


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For the Six For the Year Ended December 31, Months Ended

Ratios/Supplemental Data: June 30, 2017 2016 2015 2014 2013 2012 Net assets, end of period

(in millions) . . . . . . . . . . . . . . . . $2,127.0 $1,876.7 $1,895.5 $2,210.3 $2,007.7 $1,769.4 Ratio of expenses to average

daily net assets (before expense reduction) . . . 2.20%e 2.19% 2.11% 2.01% 2.23% 2.07%

Ratio of expenses to average daily net assets (net of expense reduction) . . . . 2.20%e 2.19% 2.11% 2.01% 2.23% 2.06%

Ratio of expenses to average daily net assets (excluding interest expense) . . 1.37%e 1.36% 1.35% 1.30% 1.42% 1.44%

Ratio of net investment income (loss) to average daily net assets(before expense reduction) . . . 3.62%e 2.97% 2.73% 2.78% 2.77% 4.34%

Ratio of net investment income (loss) to average daily net assets(net of expense reduction) . . . . 3.62%e 2.97% 2.73% 2.78% 2.77% 4.35%

Ratio of expenses to average daily managed assets (before expense reduction)f . . . 1.55%e 1.53% 1.50% 1.46% 1.57% 1.40%

Ratio of expenses to average daily managed assets (net of expense reduction)f . . . . 1.55%e 1.53% 1.50% 1.46% 1.57% 1.38%

Portfolio turnover rate . . . . . . . . . . 22%d 51% 58% 33% 58% 49% Credit Agreement

Asset coverage ratio for credit agreement . . . . . . . . . . . 350% 321% 323% 360% 336% 321%

Asset coverage per $1,000 for credit agreement . . . . . . . . . . . $ 3,502 $ 3,208 $ 3,230 $ 3,600 $ 3,362 $ 3,212

FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)

a Calculation based on average shares outstanding.b Includes gains resulting from class action litigation payments on securities owned in prior years. Without these

gains, the net realized and unrealized gains (losses) on investments per share would have been $3.65 and thetotal return on an NAV basis would have been 22.23%.

c Total net asset value return measures the change in net asset value per share over the period indicated. Totalmarket value return is computed based upon the Fund’s market price per share and excludes the effects ofbrokerage commissions. Dividends and distributions are assumed, for purposes of these calculations, to bereinvested at prices obtained under the Fund’s dividend reinvestment plan.

d Not annualized.e Annualized.f Average daily managed assets represent net assets plus the outstanding balance of the credit agreement.


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Note 1. Organization and Significant Accounting Policies

Cohen & Steers Infrastructure Fund, Inc. (the Fund) was incorporated under the laws of the Stateof Maryland on January 8, 2004 and is registered under the Investment Company Act of 1940 (the1940 Act) as a diversified closed-end management investment company. The Fund’s investmentobjective is total return with emphasis on income.

The following is a summary of significant accounting policies consistently followed by the Fund inthe preparation of its financial statements. The Fund is an investment company and, accordingly, followsthe investment company accounting and reporting guidance of the Financial Accounting StandardsBoard Accounting Standards Codification (ASC) Topic 946—Investment Companies. The accountingpolicies of the Fund are in conformity with accounting principles generally accepted in the United Statesof America (GAAP). The preparation of the financial statements in accordance with GAAP requiresmanagement to make estimates and assumptions that affect the reported amounts of assets andliabilities at the date of the financial statements and the reported amounts of income and expensesduring the reporting period. Actual results could differ from those estimates.

Portfolio Valuation: Investments in securities that are listed on the NYSE are valued, except asindicated below, at the last sale price reflected at the close of the NYSE on the business day as ofwhich such value is being determined. If there has been no sale on such day, the securities are valuedat the mean of the closing bid and ask prices on such day or, if no ask price is available, at the bidprice.

Securities not listed on the NYSE but listed on other domestic or foreign securities exchanges(including NASDAQ) are valued in a similar manner. Securities traded on more than one securitiesexchange are valued at the last sale price reflected at the close of the exchange representing theprincipal market for such securities on the business day as of which such value is being determined. Ifafter the close of a foreign market, but prior to the close of business on the day the securities are beingvalued, market conditions change significantly, certain non-U.S. equity holdings may be fair valuedpursuant to procedures established by the Board of Directors.

Readily marketable securities traded in the over-the-counter (OTC) market, including listedsecurities whose primary market is believed by Cohen & Steers Capital Management, Inc. (theinvestment manager) to be OTC, are valued on the basis of prices provided by a third-party pricingservice or third-party broker-dealers when such prices are believed by the investment manager, pursuantto delegation by the Board of Directors, to reflect the fair value of such securities.

Fixed-income securities are valued on the basis of prices provided by a third-party pricing serviceor third-party broker-dealers when such prices are believed by the investment manager, pursuant todelegation by the Board of Directors, to reflect the fair value of such securities. The pricing services orbroker-dealers use multiple valuation techniques to determine fair value. In instances where sufficientmarket activity exists, the pricing services or broker-dealers may utilize a market-based approachthrough which quotes from market makers are used to determine fair value. In instances where sufficientmarket activity may not exist or is limited, the pricing services or broker-dealers also utilize proprietaryvaluation models which may consider market transactions in comparable securities and the variousrelationships between securities in determining fair value and/or characteristics such as benchmark yield

NOTES TO FINANCIAL STATEMENTS (Unaudited)


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curves, option-adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipatedtiming of principal repayments, underlying collateral, and other unique security features which are thenused to calculate the fair values.

Short-term debt securities with a maturity date of 60 days or less are valued at amortized cost,which approximates fair value. Investments in open-end mutual funds are valued at their closing netasset value.

The policies and procedures approved by the Fund’s Board of Directors delegate authority tomake fair value determinations to the investment manager, subject to the oversight of the Board ofDirectors. The investment manager has established a valuation committee (Valuation Committee) toadminister, implement and oversee the fair valuation process according to the policies and proceduresapproved annually by the Board of Directors. Among other things, these procedures allow the Fund toutilize independent pricing services, quotations from securities and financial instrument dealers andother market sources to determine fair value.

Securities for which market prices are unavailable, or securities for which the investment managerdetermines that the bid and/or ask price or a counterparty valuation does not reflect market value, willbe valued at fair value, as determined in good faith by the Valuation Committee, pursuant to proceduresapproved by the Fund’s Board of Directors. Circumstances in which market prices may be unavailableinclude, but are not limited to, when trading in a security is suspended, the exchange on which thesecurity is traded is subject to an unscheduled close or disruption or material events occur after theclose of the exchange on which the security is principally traded. In these circumstances, the Funddetermines fair value in a manner that fairly reflects the market value of the security on the valuationdate based on consideration of any information or factors it deems appropriate. These may include, butare not limited to, recent transactions in comparable securities, information relating to the specificsecurity and developments in the markets.

Foreign equity fair value pricing procedures utilized by the Fund may cause certain non-U.S. equityholdings to be fair valued on the basis of fair value factors provided by a pricing service to reflect anysignificant market movements between the time the Fund values such securities and the earlier closingof foreign markets.

The Fund’s use of fair value pricing may cause the net asset value of Fund shares to differ from thenet asset value that would be calculated using market quotations. Fair value pricing involves subjectivejudgments and it is possible that the fair value determined for a security may be materially different thanthe value that could be realized upon the sale of that security.

Fair value is defined as the price that the Fund would expect to receive upon the sale of aninvestment or expect to pay to transfer a liability in an orderly transaction with an independent buyer inthe principal market or, in the absence of a principal market, the most advantageous market for theinvestment or liability. The hierarchy of inputs that are used in determining the fair value of the Fund’sinvestments is summarized below.

• Level 1—quoted prices in active markets for identical investments• Level 2—other significant observable inputs (including quoted prices for similar investments,

interest rates, credit risk, etc.)

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)




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• Level 3—significant unobservable inputs (including the Fund’s own assumptions in determiningthe fair value of investments)

The inputs or methodology used for valuing securities may or may not be an indication of the riskassociated with investing in those securities.

For movements between the levels within the fair value hierarchy, the Fund has adopted a policy ofrecognizing the transfer at the end of the period in which the underlying event causing the movement occurred.Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosurehierarchy. There were no transfers between Level 1 and Level 2 investments as of June 30, 2017.

The following is a summary of the inputs used as of June 30, 2017 in valuing the Fund’s investmentscarried at value:

Quoted Prices in Active Other Markets for Significant Significant Identical Observable Unobservable Investments Inputs Inputs Total (Level 1) (Level 2) (Level 3)

Common Stock:Thailand . . . . . . . . . . . . . $ 7,507,562 $ — $ 7,507,562 $ —Other Countries . . . . . . . 2,356,792,049 2,356,792,049 — —

Preferred Securities—$25 Par Value:

United States . . . . . . . . . 152,793,051 146,462,996 6,330,055 —Other Countries . . . . . . . 2,899,496 2,899,496 — —

Preferred Securities—Capital Securities:

United States . . . . . . . . . 160,562,072 — 154,170,194 6,391,878Other Countries . . . . . . . 201,252,958 — 201,252,958 —

Short-Term Investments . . . . . . 59,000,000 — 59,000,000 — Total Investmentsa . . . . . . $2,940,807,188 $2,506,154,541 $428,260,769 $6,391,878b

a Portfolio holdings are disclosed individually on the Schedule of Investments.b Level 3 investments are valued by a third-party pricing service. The inputs for these securities are not

readily available or cannot be reasonably estimated. A change in the significant unobservable inputscould result in a significantly lower or higher value in such Level 3 investments.





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The following is a reconciliation of investments for which significant unobservable inputs (Level 3)were used in determining fair value:

Preferred Securities— Capital Securities— United States

Balance as of December 31, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,275,628Change in unrealized appreciation (depreciation) . . . . . . . . . . . . . . . . . 116,250

Balance as of June 30, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,391,878

The change in unrealized appreciation (depreciation) attributable to securities owned on June 30,2017 which were valued using significant unobservable inputs (Level 3) amounted to $116,250.

Security Transactions and Investment Income: Security transactions are recorded on trade date.Realized gains and losses on investments sold are recorded on the basis of identified cost. Interestincome is recorded on the accrual basis. Discounts are accreted and premiums are amortized over thelife of the respective securities. Dividend income is recorded on the ex-dividend date, except for certaindividends on foreign securities, which are recorded as soon as the Fund is informed after the ex-dividenddate. Distributions from Master Limited Partnerships (MLPs) are recorded as income and return ofcapital based on information reported by the MLPs and management’s estimates of such amountsbased on historical information. These estimates are adjusted when the actual source of distributions isdisclosed by the MLPs and actual amounts may differ from the estimated amounts.

Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars.Investment securities and other assets and liabilities denominated in foreign currencies are translatedinto U.S. dollars based upon prevailing exchange rates on the date of valuation. Purchases and salesof investment securities and income and expense items denominated in foreign currencies are translatedinto U.S. dollars based upon prevailing exchange rates on the respective dates of such transactions.The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreignexchange rates on investments from the fluctuations arising from changes in market prices of securitiesheld. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, includinggains and losses on forward foreign currency exchange contracts, currency gains or losses realizedbetween the trade and settlement dates on securities transactions, and the difference between theamounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and theU.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gainsand losses arise from changes in the values of assets and liabilities, other than investments in securities,on the date of valuation, resulting from changes in exchange rates. Pursuant to U.S. federal income taxregulations, certain foreign currency gains/losses included in realized and unrealized gains/losses areincluded in or are a reduction of ordinary income for federal income tax purposes.



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Dividends and Distributions to Shareholders: Dividends from net investment income and capitalgain distributions are determined in accordance with U.S. federal income tax regulations, which maydiffer from GAAP. Dividends from net investment income, if any, are declared quarterly and paid monthly.Net realized capital gains, unless offset by any available capital loss carryforward, are typicallydistributed to shareholders at least annually. Dividends and distributions to shareholders are recordedon the ex-dividend date and are automatically reinvested in full and fractional shares of the Fund inaccordance with the Fund’s Reinvestment Plan, unless the shareholder has elected to have them paidin cash.

The Fund has a managed distribution policy in accordance with exemptive relief issued by theSEC. The Plan gives the Fund greater flexibility to realize long-term capital gains throughout the yearand to distribute those gains on a more regular basis to shareholders. Therefore, regular monthlydistributions throughout the year may include a portion of estimated realized long-term capital gains,along with net investment income, short-term capital gains and return of capital, which is not taxable. Inaccordance with the Plan, the Fund is required to adhere to certain conditions in order to distributelong-term capital gains during the year.

Dividends from net investment income are subject to recharacterization for tax purposes. Basedupon the results of operations for the six months ended June 30, 2017, the investment managerconsiders it likely that a significant portion of the dividends will be reclassified to distributions from netrealized gain upon the final determination of the Fund’s taxable income after December 31, 2017, theFund’s fiscal year end.

Income Taxes: It is the policy of the Fund to continue to qualify as a regulated investment company,if such qualification is in the best interest of the shareholders, by complying with the requirements ofSubchapter M of the Internal Revenue Code applicable to regulated investment companies, and bydistributing substantially all of its taxable earnings to its shareholders. Also, in order to avoid the paymentof any federal excise taxes, the Fund will distribute substantially all of its net investment income and netrealized gains on a calendar year basis. Accordingly, no provision for federal income or excise tax isnecessary. Dividend and interest income from holdings in non-U.S. securities is recorded net ofnon-U.S. taxes paid. Security and foreign currency transactions and any gains realized by the Fund onthe sale of securities in certain non-U.S. markets are subject to non-U.S. taxes. The Fund records aliability based on any unrealized gains on securities held in these markets in order to estimate thepotential non-U.S. taxes due upon the sale of these securities. Management has analyzed the Fund’stax positions taken on federal and applicable state income tax returns as well as its tax positions in non-U.S. jurisdictions in which it trades for all open tax years and has concluded that as of June 30, 2017,no additional provisions for income tax are required in the Fund’s financial statements. The Fund’s taxpositions for the tax years for which the applicable statutes of limitations have not expired are subjectto examination by the Internal Revenue Service, state departments of revenue and by foreign taxauthorities.





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Note 2. Investment Management Fees, Administration Fees and Other Transactions with Affiliates

Investment Management Fees: The investment manager serves as the Fund’s investment managerpursuant to an investment management agreement (the investment management agreement). Underthe terms of the investment management agreement, the investment manager provides the Fund withday-to-day investment decisions and generally manages the Fund’s investments in accordance withthe stated policies of the Fund, subject to the supervision of the Board of Directors.

For the services provided to the Fund, the investment manager receives a fee, accrued daily andpaid monthly, at the annual rate of 0.85% of the average daily managed assets of the Fund. Managedassets are equal to the net assets plus the amount of any borrowings, used for leverage, outstanding.

Under subadvisory agreements between the investment manager and each of Cohen & SteersAsia Limited and Cohen & Steers UK Limited (collectively, the subadvisors), affiliates of the investmentmanager, the subadvisors are responsible for managing the Fund’s investments in certain non-U.S.securities. For their services provided under the subadvisory agreements, the investment manager (notthe Fund) pays the subadvisors. The investment manager allocates 50% of the investment managementfee received from the Fund among itself and each subadvisor based on the portion of the Fund’s averagedaily managed assets managed by the investment manager and each subadvisor.

Administration Fees: The Fund has entered into an administration agreement with the investmentmanager under which the investment manager performs certain administrative functions for the Fundand receives a fee, accrued daily and paid monthly, at the annual rate of 0.06% of the average dailymanaged assets of the Fund up to $1 billion, 0.04% of the average daily managed assets of the Fundin excess of $1 billion and up to $1.5 billion and 0.02% of the average daily managed assets of theFund in excess of $1.5 billion. For the six months ended June 30, 2017, the effective administration feepaid by the Fund to the investment manager was 0.038%, and the Fund incurred $533,779 in feesunder this administration agreement. On June 13, 2017, the Board of Directors of the Fund approvedan amendment to the Fund’s administration agreement with the investment manager, effective October 1,2017, to eliminate breakpoints and increase the administration fee to an annual rate of 0.06% of theaverage daily managed assets of the Fund. Additionally, the Fund pays State Street Bank and TrustCompany as co-administrator under a fund accounting and administration agreement.

Directors’ and Officers’ Fees: Certain directors and officers of the Fund are also directors, officersand/or employees of the investment manager. The Fund does not pay compensation to directors andofficers affiliated with the investment manager except for the Chief Compliance Officer, who receivedcompensation from the investment manager, which was reimbursed by the Fund, in the amount of$17,086 for the six months ended June 30, 2017.

Note 3. Purchases and Sales of Securities

Purchases and sales of securities, excluding short-term investments, for the six months endedJune 30, 2017, totaled $623,375,872 and $666,287,196 respectively.





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Note 4. Income Tax Information

As of June 30, 2017, the federal tax cost and net unrealized appreciation (depreciation) in valueof securities held were as follows:

Cost for federal income tax purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,342,895,135

Gross unrealized appreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 609,332,450Gross unrealized depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,420,397)

Net unrealized appreciation (depreciation) . . . . . . . . . . . . . . . . . . . . . . . $ 597,912,053

Note 5. Capital Stock

The Fund is authorized to issue 300 million shares of common stock at a par value of $0.001 pershare.

During the six months ended June 30, 2017 and the year ended December 31, 2016, the Funddid not issue shares of common stock for the reinvestment of dividends.

On December 6, 2016, the Board of Directors approved the continuation of the delegation of itsauthority to management to effect repurchases, pursuant to management’s discretion and subject tomarket conditions and investment considerations, of up to 10% of the Fund’s common shares outstanding(Shares Repurchase Program) from January 1, 2017, through the fiscal year ended December 31, 2017.

During the six months ended June 30, 2017 and the year ended December 31, 2016, the Funddid not effect any repurchases.

Note 6. Borrowings

The Fund has entered into an amended and restated credit agreement (the credit agreement)with BNP Paribas Prime Brokerage International, Ltd. (BNPP) in which the Fund pays a monthly financingcharge based on a combination of LIBOR-based variable and fixed rates. The commitment amount ofthe credit agreement is $850,000,000. On April 7, 2017, the Fund entered into an amended and restatedcredit agreement with BNPP, which reduced the fee on any unused portion of the credit agreement from0.55% per annum to 0.45% per annum. BNPP may not change certain terms of the credit agreementexcept upon 360 days’ notice. Also, if the Fund violates certain conditions, the credit agreement maybe terminated. The Fund is required to pledge portfolio securities as collateral in an amount up to twotimes the loan balance outstanding (or more depending on the terms of the credit agreement) and hasgranted a security interest in the securities pledged to, and in favor of, BNPP as security for the loanbalance outstanding. If the Fund fails to meet certain requirements, or maintain other financial covenantsrequired under the credit agreement, the Fund may be required to repay immediately, in part or in full,the loan balance outstanding under the credit agreement, necessitating the sale of portfolio securitiesat potentially inopportune times. The Fund may, upon prior written notice to BNPP, prepay all or a portionof the fixed and variable rate portions of the credit facility. The Fund may have to pay a breakage fee





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with respect to a prepayment of all or a portion of the fixed rate financing under the credit facility. Thecredit agreement also permits, subject to certain conditions, BNPP to rehypothecate portfolio securitiespledged by the Fund up to the amount of the loan balance outstanding. The Fund continues to receivedividends and interest on rehypothecated securities. The Fund also has the right under the creditagreement to recall the rehypothecated securities from BNPP on demand. If BNPP fails to deliver therecalled security in a timely manner, the Fund will be compensated by BNPP for any fees or lossesrelated to the failed delivery or, in the event a recalled security will not be returned by BNPP, the Fund,upon notice to BNPP, may reduce the loan balance outstanding by the amount of the recalled securityfailed to be returned. The Fund will receive a portion of the fees earned by BNPP in connection with therehypothecation of portfolio securities.

On February 24, 2015, the Fund entered into an amendment to the credit agreement in order toextend the term length of the 5-year, 6-year and 7-year fixed rate tranches of the credit agreement bythree years to 2020, 2021 and 2022, respectively. The new rates will increase and become effectiveupon maturity date of the current fixed rate tranches. In connection with the extension, the Fund paid anarrangement fee based on the aggregate fixed rate financing amount.

As of June 30, 2017, the Fund had outstanding borrowings of $850,000,000 at a weighted averagerate of 2.0%. During the six months ended June 30, 2017, the Fund borrowed an average daily balanceof $850,000,000 at a weighted average borrowing cost of 2.0%. As of June 30, 2017, the aggregatevalue of rehypothecated securities, which are reflected as part of investments in securities on theStatement of Assets and Liabilities, was $764,048,603. The value of the outstanding borrowings underthe credit agreement exceeded the value of the rehypothecated securities at June 30, 2017. During thesix months ended June 30, 2017, the Fund earned $90,201 in fees from rehypothecated securities.

Note 7. Other Risks

Common Stock Risk: While common stocks have historically generated higher average returnsthan fixed income securities over the long-term, common stock has also experienced significantly morevolatility in those returns, although under certain market conditions, fixed-income investments may havecomparable or greater price volatility. An adverse event, such as an unfavorable earnings report, maydepress the value of common stock held by the Fund. Also, the price of common stock is sensitive togeneral movements in the stock market. A drop in the stock market may depress the price of commonstock held by the Fund.

Infrastructure Companies Risk: Securities and instruments of infrastructure companies are moresusceptible to adverse economic or regulatory occurrences affecting their industries. Infrastructurecompanies may be subject to a variety of factors that may adversely affect their business or operations,including high interest costs in connection with capital construction and improvement programs, highleverage, costs associated with environmental and other regulations, the effects of economic slowdown,surplus capacity, increased competition from other providers of services, uncertainties concerning theavailability of fuel at reasonable prices, the effects of energy conservation policies and other factors.Infrastructure companies may also be affected by or subject to high interest costs in connection with





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capital construction and improvement programs; difficulty in raising capital in adequate amounts onreasonable terms in periods of high inflation and unsettled capital markets; inexperience with andpotential losses resulting from a developing deregulatory environment; costs associated with compliancewith and changes in environmental and other regulations; regulation by various government authorities;government regulation of rates charged to customers; service interruption due to environmental,operational or other mishaps; the imposition of special tariffs and changes in tax laws, regulatory policiesand accounting standards; technological innovations that may render existing plants, equipment orproducts obsolete; and general changes in market sentiment towards infrastructure and utilities assets.

Foreign Currency and Currency Hedging Risk: Although the Fund will report its NAV and paydividends in U.S. dollars, foreign securities often are purchased with and make any dividend and interestpayments in foreign currencies. Therefore, the Fund’s investments in foreign securities will be subject toforeign currency risk, which means that the Fund’s NAV could decline as a result of changes in theexchange rates between foreign currencies and the U.S. dollar. Certain foreign countries may imposerestrictions on the ability of issuers of foreign securities to make payment of principal, dividends andinterest to investors located outside the country, due to blockage of foreign currency exchanges orotherwise. The Fund may, but is not required to, engage in various instruments that are designed tohedge the Fund’s foreign currency risks.

If the Fund were to utilize derivatives for the purpose of hedging foreign currency risks, it would besubject to risks different from, and possibly greater than, the risks associated with investing directly intraditional securities. Among the risks presented are counterparty risk, financial leverage risk, liquidityrisk, OTC trading risk and tracking risk. The use of derivatives can lead to losses because of adversemovements in the price or value of the underlying asset, index or rate, which may be magnified bycertain features of the derivatives.

Foreign (Non-U.S.) and Emerging Market Securities Risk: The Fund directly purchases securitiesof foreign issuers. Risks of investing in foreign securities, which can be expected to be greater forinvestments of emerging markets, include currency risks, future political and economic developmentsand possible imposition of foreign withholding taxes on income or proceeds payable on the securities.In addition, there may be less publicly available information about a foreign issuer than about a domesticissuer, and foreign issuers may not be subject to the same accounting, auditing and financialrecordkeeping standards and requirements as domestic issuers. Moreover, securities of many foreignissuers and their markets may be less liquid and their prices more volatile than securities of comparableU.S. issuers.

Master Limited Partnership Risk: An investment in MLP units involves some risks that differ froman investment in the common stock of a corporation. Holders of MLP units have limited control onmatters affecting the partnership. Investing in MLPs involves certain risks related to investing in theunderlying assets of the MLPs and risks associated with pooled investment vehicles. MLPs holdingcredit-related investments are subject to interest rate risk and the risk of default on payment obligationsby debt issuers. MLPs that concentrate in a particular industry or a particular geographic region aresubject to risks associated with such industry or region. The benefit derived from the Fund’s investmentin MLPs is largely dependent on the MLPs being treated as partnerships for federal income tax purposes.





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Weakening energy market fundamentals may increase counterparty risk and impact MLP profitability.Specifically, energy companies suffering financial distress may be able to abrogate contracts with MLPs,decreasing or eliminating sources of revenue.

Leverage Risk: The use of leverage is a speculative technique and there are special risks andcosts associated with leverage. The net asset value of the Fund’s shares may be reduced by the issuanceand ongoing costs of leverage. So long as the Fund is able to invest in securities that produce aninvestment yield that is greater than the total cost of leverage, the leverage strategy will produce highercurrent net investment income for the shareholders. On the other hand, to the extent that the total costof leverage exceeds the incremental income gained from employing such leverage, shareholders wouldrealize lower net investment income. In addition to the impact on net income, the use of leverage willhave an effect of magnifying capital appreciation or depreciation for shareholders. Specifically, in an upmarket, leverage will typically generate greater capital appreciation than if the Fund were not employingleverage. Conversely, in down markets, the use of leverage will generally result in greater capitaldepreciation than if the Fund had been unlevered. To the extent that the Fund is required or elects toreduce its leverage, the Fund may need to liquidate investments, including under adverse economicconditions which may result in capital losses potentially reducing returns to shareholders. There can beno assurance that a leveraging strategy will be successful during any period in which it is employed.

Preferred Securities Risk: Preferred securities are subject to credit risk, which is the risk that asecurity will decline in price, or the issuer of the security will fail to make dividend, interest or principalpayments when due, because the issuer experiences a decline in its financial status. Preferred securitiesare also subject to interest rate risk and may decline in value because of changes in market interestrates. The Fund may be subject to a greater risk of rising interest rates than would normally be the casein an environment of historically low interest rates and the effect of potential government fiscal policyinitiatives and resulting market reaction to those initiatives. In addition, an issuer may be permitted todefer or omit distributions. Preferred securities are also generally subordinated to bonds and other debtinstruments in a company’s capital structure. During periods of declining interest rates, an issuer maybe able to exercise an option to redeem (call) its issue at par earlier than scheduled, and the Fund maybe forced to reinvest in lower yielding securities. Certain preferred securities may be substantially lessliquid than many other securities, such as common stocks. Generally, preferred security holders haveno voting rights with respect to the issuing company unless certain events occur. Certain preferredsecurities may give the issuers special redemption rights allowing the securities to be redeemed priorto a specified date if certain events occur, such as changes to tax or securities laws.

Credit and Below Investment Grade Securities Risk: Lower-rated securities, or equivalent unratedsecurities, which are commonly known as “high-yield bonds” or “junk bonds,” generally involve greatervolatility of price and risk of loss of income and principal, and may be more susceptible to real orperceived adverse economic and competitive industry conditions than higher grade securities. It isreasonable to expect that any adverse economic conditions could disrupt the market for lower-ratedsecurities, have an adverse impact on the value of those securities and adversely affect the ability ofthe issuers of those securities to repay principal and interest on those securities.





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Geopolitical Risk: Occurrence of global events similar to those in recent years, such as war, terroristattacks, natural disasters, country instability, infectious disease epidemics, market instability, debt crisesand downgrades, embargoes, tariffs, sanctions and other trade barriers and other governmental tradeor market control programs, the potential exit of a country from its respective union and relatedgeopolitical events, may result in market volatility and may have long-lasting impacts on both the U.S.and global financial markets. Additionally, those events, as well as other changes in foreign and domesticpolitical and economic conditions, could adversely affect individual issuers or related groups of issuers,securities markets, interest rates, secondary trading, credit ratings, inflation, investor sentiment andother factors affecting the value of the Fund’s investments. The decision of the United Kingdom (UK) toexit from the European Union following the June 2016 vote on the matter (referred to as Brexit) maycause uncertainty and thus adversely impact financial results of the Fund and the global financialmarkets. Growing tensions between the United States and other foreign powers, or among foreignpowers, and possible diplomatic, trade or other sanctions could adversely impact the markets and theFund. The strengthening of the U.S. dollar relative to other currencies may, among other things, adverselyaffect the Fund’s investments denominated in non-U.S. dollar currencies. It is difficult to predict whensimilar events affecting the U.S. or global financial markets may occur, the effects that such events mayhave, and the duration of those effects.

Regulatory Risk: The U.S. government has proposed and adopted multiple regulations that couldhave a long-lasting impact on the Fund and on the mutual fund industry in general. The SEC proposedrules governing the use of derivatives by registered investment companies, the Department of Labor’s(DOL) final rule on conflicts of interest on fiduciary investment advice, as well as the SEC’s final rules andamendments to modernize the reporting and disclosure (Modernization) could, among other things,restrict and/or increase the cost of the Fund’s ability to engage in transactions and/or increase overallexpenses of the Fund. In addition, Congress, various exchanges and regulatory and self-regulatoryauthorities, both domestic and foreign, have undertaken reviews of options and futures trading in light ofmarket volatility. Among the actions that have been taken or proposed to be taken are new limits andreporting requirements for speculative positions, new or more stringent daily price fluctuation limits forfutures and options transactions, and increased margin requirements for various types of futurestransactions. While the full extent of all of these regulations is still unclear, these regulations and actionsmay adversely affect the instruments in which the Fund invests and its ability to execute its investmentstrategy.

Note 8. Other

In the normal course of business, the Fund enters into contracts that provide generalindemnifications. The Fund’s maximum exposure under these arrangements is dependent on claimsthat may be made against the Fund in the future and, therefore, cannot be estimated; however, basedon experience, the risk of material loss from such claims is considered remote.





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Note 9. New Accounting Guidance

In August 2016, the Financial Accounting Standards Board (FASB) issued a new AccountingStandards Update No. 2016-15, “Statement of Cash Flows (Topic 230), a consensus of the FASB’sEmerging Issues Task Force” (ASU 2016-15). ASU 2016-15 is intended to reduce diversity in practicein how certain transactions are classified in the statement of cash flows. The issues addressed in ASU2016-15 are: debt prepayment or debt extinguishment costs, settlement of zero-coupon debtinstruments, contingent consideration payments made after a business combination, proceeds fromthe settlement of insurance claims, proceeds from the settlement of corporate-owned life insurancepolicies, including bank-owned life insurance policies, distributions received from equity methodinvestments, beneficial interests in securitization transactions; and, separately identifiable cash flowsand application of the predominance principle. ASU 2016-15 is effective for interim and annual reportingperiods beginning after December 15, 2017. The Fund does not expect the adoption of the new standardto have a material effect on its financial statements and related disclosures.

In November 2016, the FASB issued a new Accounting Standards Update No. 2016-18, “Statementof Cash Flows (Topic 230), Restricted Cash, a consensus of the FASB’s Emerging Issues Task Force”(ASU 2016-18). ASU 2016-18 requires that a statement of cash flows explain the change during theperiod in the total of cash, cash equivalents, and amounts generally described as restricted cash orrestricted cash equivalents. Therefore, amounts generally described as restricted cash and restrictedcash equivalents should be included with cash and cash equivalents when reconciling thebeginning-of-period and end-of-period total amounts shown on the statement of cash flows. Theamendments in ASU 2016-18 do not provide a definition of restricted cash or restricted cash equivalents.ASU 2016-18 is effective for interim and annual reporting periods beginning after December 15, 2017.The Fund does not expect the adoption of the new standard to have a material effect on its financialstatements and related disclosures.

In October 2016, the SEC adopted new rules and amended existing rules (together, the “finalrules”) intended to modernize the reporting and disclosure of information by registered investmentcompanies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosureabout derivatives in investment company financial statements, as well as other amendments. Thecompliance date for the amendments to Regulation S-X is for periods ending after August 1, 2017. Theadoption will have no effect on the Fund’s net assets or results of operations.

Note 10. Subsequent Events

Management has evaluated events and transactions occurring after June 30, 2017 through thedate that the financial statements were issued, and has determined that no additional disclosure in thefinancial statements is required.





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PROXY RESULTS (Unaudited)

Cohen & Steers Infrastructure Fund, Inc. shareholders voted on the following proposals at theannual meeting held on April 27, 2017. The description of each proposal and number of shares votedare as follows:

Shares Voted Authority Common Shares For Withheld

To elect Directors:Michael G. Clark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,489,208.624 1,335,576.257Bonnie Cohen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,490,679.554 1,334,105.327Dean Junkans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,438,376.034 1,386,408.847Richard E. Kroon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,660,836.465 2,163,948.416


Merrill Corp - Cohen _ Steers Infrastructure Fund Semi-Annual Report [Funds] 333-160353 06-30-2017 ED [AUX] | pweakly | 28-Aug-17 15:57 | 17-15860-2.ga | Sequence: 1CHKSUM Content: 62469 Layout: 18995 Graphics: No Graphics CLEAN


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AVERAGE ANNUAL TOTAL RETURNS(Periods ended June 30, 2017) (Unaudited)

Based on Net Asset Value Based on Market Value Since Inception Since Inception One Year Five Years Ten Years (3/30/04) One Year Five Years Ten Years (3/30/04) 11.69% 14.38% 7.14% 10.56% 21.43% 15.10% 8.03% 9.73%

The performance data quoted represent past performance. Past performance is no guarantee offuture results. The investment return will vary and the principal value of an investment will fluctuate andshares, if sold, may be worth more or less than their original cost. Current performance may be lower orhigher than the performance data quoted. Performance results reflect the effect of leverage fromutilization of borrowings under a credit agreement and/or from the issuance of preferred shares. Currenttotal returns of the Fund can be obtained by visiting our website at cohenandsteers.com. During certainperiods presented above, the investment manager waived fees and/or reimbursed expenses. Withoutthis arrangement, performance would have been lower. The Fund’s returns assume the reinvestment ofall dividends and distributions at prices obtained under the Fund’s dividend reinvestment plan.

REINVESTMENT PLAN

We urge shareholders who want to take advantage of this plan and whose shares are held in‘Street Name’ to consult your broker as soon as possible to determine if you must change registrationinto your own name to participate.

OTHER INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxiesrelating to portfolio securities is available (i) without charge, upon request, by calling 800-330-7348,(ii) on our website at cohenandsteers.com or (iii) on the Securities and Exchange Commission’s (theSEC) website at http://www.sec.gov. In addition, the Fund’s proxy voting record for the most recent12-month period ended June 30 is available by August 31 of each year (i) without charge, upon request,by calling 800-330-7348 or (ii) on the SEC’s website at http://www.sec.gov.

The Fund files its complete schedule of portfolio holdings with the SEC for the first and thirdquarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available (i) without charge, uponrequest, by calling 800-330-7348 or (ii) on the SEC’s website at http://www.sec.gov. In addition, theForms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC.Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330.

Please note that distributions paid by the Fund to shareholders are subject to recharacterizationfor tax purposes and are taxable up to the amount of the Fund’s investment company taxable incomeand net realized gains. Distributions in excess of the Fund’s investment company taxable income andnet realized gains are a return of capital distributed from the Fund’s assets. To the extent this occurs,the Fund’s shareholders of record will be notified of the estimated amount of capital returned toshareholders for each such distribution and this information will also be available at cohenandsteers.com.The final tax treatment of all distributions is reported to shareholders on their 1099-DIV forms, which aremailed after the close of each calendar year. Distributions of capital decrease the Fund’s total assetsand, therefore, could have the effect of increasing the Fund’s expense ratio. In addition, in order tomake these distributions, the Fund may have to sell portfolio securities at a less than opportune time.




42

Notice is hereby given in accordance with Rule 23c-1 under the 1940 Act that the Fund maypurchase, from time to time, shares of its common stock in the open market.

Implementation of Asset Allocation Strategy Group

The Asset Allocation Strategy Group (ASG) aggregates economic outlook, risk and relative valueto develop views across asset classes and makes recommendations on allocations among the assetclasses. The portfolio managers of the Fund oversee the implementation of the ASG’s asset allocationrecommendations to the best degree possible. In consideration of the portfolio objectives andconstraints, the portfolio managers have discretion to adjust the ASG’s recommended allocations. Eachportfolio manager on the team then directs and supervises allocation decisions for their respective assetclass, and leads and guides the other members of their investment team.

APPROVAL OF INVESTMENT MANAGEMENT AND SUBADVISORY AGREEMENTS

The Board of Directors of the Fund, including a majority of the directors who are not parties to theFund’s investment management and subadvisory agreements (the Management Agreements), orinterested persons of any such party (Independent Directors), has the responsibility under the 1940 Actto approve the Fund’s Management Agreements for their initial two year terms and their continuationannually thereafter at a meeting of the Board of Directors called for the purpose of voting on the approvalor continuation. At a meeting of the Independent Directors held on June 6, 2017 and at a meeting of thefull Board of Directors held in person on June 13, 2017, the Management Agreements were discussedand were unanimously continued for a term ending June 30, 2018 by the Fund’s Board of Directors,including the Independent Directors. The Independent Directors were represented by independentcounsel who assisted them in their deliberations during the meetings and executive sessions.

In considering whether to continue the Management Agreements, the Board of Directors reviewedmaterials provided by an independent data provider, which included, among other things, fee, expenseand performance information compared to peer funds (Peer Funds) and performance comparisons toa larger category universe; summary information prepared by the Fund’s investment manager (theInvestment Manager); and a memorandum from Fund counsel outlining the legal duties of the Board ofDirectors. The Board of Directors also spoke directly with representatives of the independent dataprovider and met with investment management personnel. In addition, the Board of Directors consideredinformation provided from time to time by the Investment Manager throughout the year at meetings ofthe Board of Directors, including presentations by portfolio managers relating to the investmentperformance of the Fund and the investment strategies used in pursuing the Fund’s objective. Inparticular, the Board of Directors considered the following:

(i) The nature, extent and quality of services to be provided by the Investment Manager and theSubadvisors: The Board of Directors reviewed the services that the Investment Manager and sub-investment advisors (the Subadvisors) provide to the Fund, including, but not limited to, making theday-to-day investment decisions for the Fund, and, for the Investment Manager, generally managingthe Fund’s investments in accordance with the stated policies of the Fund. The Board of Directors alsodiscussed with officers and portfolio managers of the Fund the types of transactions that were beingdone on behalf of the Fund. Additionally, the Board of Directors took into account the services providedby the Investment Manager and the Subadvisors to its other funds and accounts, including those thathave investment objectives and strategies similar to the Fund. The Board of Directors also considered




43

the education, background and experience of the Investment Manager’s and Subadvisors’ personnel,particularly noting the potential benefit that the portfolio managers’ work experience and favorablereputation can have on the Fund. The Board of Directors further noted the Investment Manager’s andSubadvisors’ ability to attract qualified and experienced personnel. The Board of Directors alsoconsidered the administrative services provided by the Investment Manager, including compliance andaccounting services. After consideration of the above factors, among others, the Board of Directorsconcluded that the nature, extent and quality of services provided by the Investment Manager and theSubadvisors are satisfactory and appropriate.

(ii) Investment performance of the Fund and the Investment Manager and Subadvisors: The Boardof Directors considered the investment performance of the Fund compared to Peer Funds and comparedto a relevant linked blended benchmark. The Fund changed its investment strategies and benchmarkeffective January 1, 2010. In addition, on March 31, 2015, one of the components of the linkedbenchmark was retired and replaced. For comparative purposes, the Fund’s prior benchmark is usedfor the period it was in place and the current benchmark is used since the date of the change. TheBoard of Directors noted that the Fund outperformed the Peer Funds’ medians for the three-, five- andten-year periods ended March 31, 2017, ranking one out of four peers for the three-and five-year periodsand one out of three peers for the ten-year period. The Board of Directors noted that the Fundunderperformed the Peer Funds’ median for the one-year period ended March 31, 2017, ranking threeout of four peers. The Board of Directors also noted that the Fund outperformed its linked benchmarkfor the one-, five- and ten-year periods ended March 31, 2017, and underperformed its linked benchmarkfor the three-year period. The Board of Directors engaged in discussions with the Investment Managerregarding the contributors to and detractors from the Fund’s performance during the periods, as well asthe impact of leverage on the Fund’s performance. The Board of Directors also considered supplementalinformation provided by the Investment Manager, including a narrative summary of various factorsaffecting performance, and the Investment Manager’s performance in managing other infrastructurefunds. The Board of Directors then determined that Fund performance, in light of all considerationsnoted above, supported the continuation of the Management Agreements.

(iii) Cost of the services to be provided and profits to be realized by the Investment Manager fromthe relationship with the Fund: The Board of Directors considered the actual management fees paid bythe Fund as well as the total expense ratios. As part of its analysis, the Board of Directors gaveconsideration to the fee and expense analyses provided by the independent data provider. The Boardof Directors considered that the Fund’s actual management fees at managed and common asset levelsranked one out of four peers for each. The Board of Directors also noted that the Fund’s total expenseratios at managed and common asset levels, including and excluding investment-related expenses,also ranked one out of four peers for each. The Board of Directors considered the impact of leveragelevels on the Fund’s fees and expenses at managed and common asset levels. In light of theconsiderations above, the Board of Directors concluded that the Fund’s current expense structure wassatisfactory.

The Board of Directors also reviewed information regarding the profitability to the InvestmentManager of its relationship with the Fund. The Board of Directors considered the level of the InvestmentManager’s profits and whether the profits were reasonable for the Investment Manager. Because theSubadvisors are paid by the Investment Manager for investment services provided to the Fund and not




44

by the Fund and are affiliates of the Investment Manager, the Board of Directors considered theprofitability of the Investment Manager as a whole and did not consider the Subadvisors’ separateprofitability to be particularly relevant to their determination. The Board of Directors took into considerationother benefits to be derived by the Investment Manager in connection with the Management Agreements,noting particularly the research and related services, within the meaning of Section 28(e) of the SecuritiesExchange Act of 1934, as amended, that the Investment Manager receives by allocating the Fund’sbrokerage transactions. The Board of Directors further considered that the Investment Managercontinues to reinvest profits back in the business, including upgrading and/or implementing new trading,compliance and accounting systems, and by adding investment personnel to the portfolio managementteams. The Board of Directors also considered the administrative services provided by the InvestmentManager and the associated administration fee paid to the Investment Manager for such services underthe Administration Agreement. The Board of Directors determined that the services received under theAdministration Agreement are beneficial to the Fund. Some of these services include compliance,accounting and operational services, oversight of third party service providers, supervising complianceby the Fund with regulatory requirements, furnishing office space and facilities for the Fund, andproviding persons satisfactory to the Board of Directors to serve as officers of the Fund. The Board ofDirectors then approved a 0.022% increase in the administration fee paid by the Fund by eliminatingbreakpoints. The Board of Directors concluded that the profits realized by the Investment Manager fromits relationship with the Fund were reasonable and consistent with the Investment Manager’s fiduciaryduties.

(iv) The extent to which economies of scale would be realized as the Fund grows and whether feelevels would reflect such economies of scale: The Board of Directors noted that, as a closed-end fund,the Fund would not be expected to have inflows of capital that might produce increasing economies ofscale. The Board of Directors determined that, given the Fund’s closed-end structure, there were nosignificant economies of scale that were not being shared with shareholders. In considering economiesof scale, the Board of Directors also noted, as discussed above in (iii), that the Investment Managercontinues to reinvest profits back in the business.

(v) Comparison of services to be rendered and fees to be paid to those under other investmentmanagement contracts, such as contracts of the same and other investment advisors or other clients:As discussed above in (iii), the Board of Directors compared the fees paid under the ManagementAgreements to those under other investment management contracts of other investment advisorsmanaging Peer Funds. The Board of Directors also compared the services rendered, fees paid andprofitability under the Management Agreements to those under the Investment Manager’s other fundmanagement agreements and advisory contracts with institutional and other clients with similarinvestment mandates. The Board of Directors also considered the entrepreneurial risk and financialexposure assumed by the Investment Manager in developing and managing the Fund that theInvestment Manager does not have with institutional and other clients and other differences in themanagement of registered investment companies and institutional accounts. The Board of Directorsdetermined that on a comparative basis the fees under the Management Agreements were reasonablein relation to the services provided.

No single factor was cited as determinative to the decision of the Board of Directors. Rather, afterweighing all of the considerations and conclusions discussed above, the Board of Directors, includingthe Independent Directors, unanimously approved the continuation of the Management Agreements.




Cohen & Steers Privacy Policy

Does Cohen & Steers Can you limit thisReasons we can share your personal information share? sharing?

What Does Cohen & Steers Do With Your Personal Information?Facts

Financial companies choose how they share your personal information.Federal law gives consumers the right to limit some but not all sharing.Federal law also requires us to tell you how we collect, share, and protectyour personal information. Please read this notice carefully to understandwhat we do.

Why?

The types of personal information we collect and share depend on theproduct or service you have with us. This information can include:• Social Security number and account balances• Transaction history and account transactions• Purchase history and wire transfer instructions

What?

All financial companies need to share customers’ personal information to runtheir everyday business. In the section below, we list the reasons financialcompanies can share their customers’ personal information; the reasonsCohen & Steers chooses to share; and whether you can limit this sharing.

How?

NoYes

For our everyday business purposes—such as to process your transactions, maintainyour account(s), respond to court orders andlegal investigations, or reports to credit bureaus

NoYesFor our marketing purposes—

to offer our products and services to you

We don’t shareNoFor joint marketing with other financial companies—

We don’t shareNoFor our affiliates’ everyday business purposes—

information about your transactions andexperiences

We don’t shareNoFor our affiliates’ everyday business purposes—

information about your creditworthiness

We don’t shareNoFor our affiliates to market to you—

We don’t shareNoFor non-affiliates to market to you—

Call 800.330.7348Questions?

45


Merrill Corp - Cohen _ Steers Infrastructure Fund Semi-Annual Report [Funds] 333-160353 06-30-2017 ED [AUX] | pweakly | 22-Aug-17 17:54 | 17-15860-2.ge | Sequence: 1CHKSUM Content: 21226 Layout: 21170 Graphics: No Graphics CLEAN

JOB: 17-15860-2 CYCLE#;BL#: 12; 0 TRIM: 7.75" x 8.75" COMPOSITECOLORS: PANTONE Black 7 U, ~note-color 2 GRAPHICS: none V1.5

Cohen & Steers Privacy Policy—(Continued)

Who we are

What we do

Definitions

Who is providing this notice?

Cohen & Steers Capital Management, Inc., Cohen & Steers Asia Limited,Cohen & Steers Japan, LLC, Cohen & Steers UK Limited, Cohen & SteersSecurities, LLC, Cohen & Steers Private Funds and Cohen & Steers Openand Closed-End Funds (collectively, Cohen & Steers).

How does Cohen & Steersprotect my personalinformation?

To protect your personal information from unauthorized access and use, weuse security measures that comply with federal law. These measures includecomputer safeguards and secured files and buildings. We restrict access toyour information to those employees who need it to perform their jobs, andalso require companies that provide services on our behalf to protect yourinformation.

How does Cohen & Steerscollect my personalinformation?

We collect your personal information, for example, when you:• Open an account or buy securities from us• Provide account information or give us your contact information• Make deposits or withdrawals from your accountWe also collect your personal information from other companies.

Why can’t I limit all sharing?

Federal law gives you the right to limit only:• sharing for affiliates’ everyday business purposes—information about

your creditworthiness• affiliates from using your information to market to you• sharing for non-affiliates to market to youState law and individual companies may give you additional rights to limitsharing.

AffiliatesCompanies related by common ownership or control. They can be financialand nonfinancial companies.• Cohen & Steers does not share with affiliates.

Non-affiliatesCompanies not related by common ownership or control. They can befinancial and nonfinancial companies.• Cohen & Steers does not share with non-affiliates.

Joint marketingA formal agreement between non-affiliated financial companies that togethermarket financial products or services to you.• Cohen & Steers does not jointly market.

46



JOB: 17-15860-2 CYCLE#;BL#: 12; 0 TRIM: 7.75" x 8.75" COMPOSITECOLORS: PANTONE Black 7 U, ~note-color 2 GRAPHICS: none V1.5

47


Cohen & Steers Investment Solutions

Please consider the investment objectives, risks, charges and expenses of any Cohen & Steers U.S. registeredopen-end fund carefully before investing. A summary prospectus and prospectus containing this and otherinformation can be obtained by calling 800-330-7348 or by visiting cohenandsteers.com. Please read thesummary prospectus and prospectus carefully before investing.

COHEN & STEERS REAL ASSETS FUND

• Designed for investors seeking total return and themaximization of real returns during inflationaryenvironments by investing primarily in real assets

• Symbols: RAPAX, RAPCX, RAPIX, RAPRX, RAPZXCOHEN & STEERS

INSTITUTIONAL GLOBAL REALTY SHARES

• Designed for institutional investors seeking total return,investing primarily in global real estate securities

• Symbol: GRSIX

COHEN & STEERS GLOBAL REALTY SHARES

• Designed for investors seeking total return, investingprimarily in global real estate equity securities

• Symbols: CSFAX, CSFCX, CSSPX, GRSRX, CSFZX

COHEN & STEERS REALTY SHARES

• Designed for investors seeking total return, investingprimarily in U.S. real estate securities

• Symbol: CSRSX

COHEN & STEERS REAL ESTATE SECURITIES FUND

• Designed for investors seeking total return, investingprimarily in U.S. real estate securities

• Symbols: CSEIX, CSCIX, CREFX, CSDIX, CIRRX,CSZIX

COHEN & STEERS INSTITUTIONAL REALTY SHARES

• Designed for institutional investors seeking total return,investing primarily in U.S. real estate securities

• Symbol: CSRIX

COHEN & STEERS INTERNATIONAL REALTY FUND

• Designed for investors seeking total return, investingprimarily in international (non-U.S.) real estatesecurities

• Symbols: IRFAX, IRFCX, IRFIX, IRFRX, IRFZX

COHEN & STEERSACTIVE COMMODITIES STRATEGY FUND

• Designed for investors seeking total return, investingprimarily in a diversified portfolio of exchange-tradedcommodity future contracts and othercommodity-related derivative instruments

• Symbols: CDFAX, CDFCX, CDFIX, CDFRX, CDFZX COHEN & STEERS GLOBAL INFRASTRUCTURE FUND

• Designed for investors seeking total return, investingprimarily in global infrastructure securities

• Symbols: CSUAX, CSUCX, CSUIX, CSURX, CSUZXCOHEN & STEERS

MLP & ENERGY OPPORTUNITY FUND

• Designed for investors seeking total return, investingprimarily in midstream energy master limitedpartnership (MLP) units and related stocks

• Symbols: MLOAX, MLOCX, MLOIX, MLORX, MLOZXCOHEN & STEERS

LOW DURATION PREFERRED AND INCOME FUND

• Designed for investors seeking high current incomeand capital preservation by investing in low-durationpreferred and other income securities issued by U.S.and non-U.S. companies

• Symbols: LPXAX, LPXCX, LPXIX, LPXRX, LPXZXCOHEN & STEERS

PREFERRED SECURITIES AND INCOME FUND

• Designed for investors seeking total return (highcurrent income and capital appreciation), investingprimarily in preferred and debt securities issued byU.S. and non-U.S. companies

• Symbols: CPXAX, CPXCX, CPXFX, CPXIX, CPRRX,CPXZX

COHEN & STEERS DIVIDEND VALUE FUND

• Designed for investors seeking long-term growth ofincome and capital appreciation, investing primarily individend paying common stocks and preferred stocks

• Symbols: DVFAX, DVFCX, DVFIX, DVFRX, DVFZX

COHEN & STEERS GLOBAL REALTY MAJORS ETF • Designed for investors who seek a relatively low-cost

passive approach for investing in a portfolio of globalreal estate equity securities of companies in aspecified index

• Symbol: GRI

Distributed by ALPS Distributors, Inc.

ISHARES COHEN & STEERSREALTY MAJORS INDEX FUND

• Designed for investors who seek a relatively low-costpassive approach for investing in a portfolio of U.S.real estate equity securities of companies in aspecified index

• Symbol: ICF

Distributed by SEI Investments Distribution Co.

Distributed by Cohen & Steers Securities, LLC.



48

OFFICERS AND DIRECTORS

Robert H. SteersDirector and ChairmanJoseph M. HarveyDirector and Vice PresidentMichael G. ClarkDirectorBonnie CohenDirectorGeorge GrossmanDirectorDean JunkansDirectorRichard E. KroonDirectorGerald J. MaginnisDirectorJane F. MagpiongDirectorRichard J. NormanDirectorFrank K. RossDirectorC. Edward Ward, Jr.DirectorAdam M. DerechinPresident and Chief Executive OfficerRobert S. BeckerVice PresidentBenjamin MortonVice PresidentWilliam F. ScapellVice PresidentYigal D. JhiradVice PresidentFrancis C. PoliAssistant SecretaryJames GiallanzaChief Financial OfficerAlbert LaskajTreasurerLisa D. PhelanChief Compliance Officer

KEY INFORMATION

Investment ManagerCohen & Steers Capital Management, Inc.280 Park AvenueNew York, NY 10017(212) 832-3232

Co-administrator and CustodianState Street Bank and Trust CompanyOne Lincoln StreetBoston, MA 02111

Transfer AgentComputershare480 Washington BoulevardJersey City, NJ 07310(866) 227-0757

Legal CounselRopes & Gray LLP1211 Avenue of the AmericasNew York, NY 10036

New York Stock Exchange Symbol: UTFWebsite: cohenandsteers.com

This report is for shareholder information. This isnot a prospectus intended for use in thepurchase or sale of Fund shares. Performancedata quoted represent past performance. Pastperformance is no guarantee of future results andyour investment may be worth more or less at thetime you sell your shares.




semi-annual report - cohen & steers

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